Jinwu Financial News | Haitong International Development Research Report said that after implementing the “Mobile Internet Transformation” strategy, Jinshan Software (03888) formed a strategic platform based on interactive entertainment and office software, with cloud services and AI as the new direction. The company's core business is divided into two major divisions: office software and services, and online games. The corresponding holding subsidiaries are Jinshan Office, Nishisanju, and Jinshan World Tour. Jinshan Office maintains steady operation, adheres to the “multi-screen, cloud, content, collaboration and AI” strategy, focuses on R&D in the field of AI and collaboration, empowers individual and institutional customers with technological innovation, brings users a one-stop AI office experience, and promotes the implementation of new quality productivity in the office field. The online game business continues to iterate on the classic Swordsman series and actively expand new categories.
The bank believes that the company is a leading domestic software and Internet service company, and the office business and game business are two-wheel drive for long-term development. The office business carried the banner of domestic Office software, launched WPSAI and continued to iterate products in the era of artificial intelligence. The bank expects that as AI commercialization contributions accelerate and benefit from the continuous release of demand for credit innovation, office business revenue will grow at a faster rate. The bank expects the revenue growth rate of the company's office business in 2024-2026 to 12.09%/20.28%/22.93%, respectively; in terms of gaming business, the company built the classic Sword Man series and continued to innovate and expand. After “Sword Net 3 Unbounded” was launched in June 2024, the performance exceeded expectations, and game business revenue was achieved. High growth. In addition, the new games “Unlock the Limits” and “Sword Man Zero” are expected to be launched in 2025, contributing to the continued growth of the game business. The bank expects the revenue growth rate of the company's game business to be 28.02%/20.59%/18.80% respectively in 2024-2026. In terms of gross margin, the bank expects the company's comprehensive gross margin to remain stable. The gross margin for 2024-2026 is 82.44%/82.85%/83.31%, respectively.
The bank expects the company's 2024-2026 revenue to be 10.192/12.271/14.829 billion yuan, respectively, with a year-on-year growth rate of 19.4%/20.4%/20.8%; net profit to mother of 0.873/1.645/2.335 billion yuan, respectively, with a year-on-year growth rate of 80.5%/88.5%/41.9%; EPS of 0.65/1.23/1.75 yuan, respectively. Referring to comparable companies, the company was given 35 times PE in 2025, with a target price of HK$46.85 per share (converted according to HK$1 = RMB 0.92). For the first time, coverage was given, and a “superior to the market” rating was given.
