HK Stock Market Move | CHINASOFT INT'L (00354) rises over 3%, Citigroup believes the company will benefit from the gradual recovery of HarmonyOS and AI applications.

CHINASOFT INT'L (00354) rose by more than 3%, reaching a 3.05% increase to HK$5.06 by the time of the report, with a transaction volume of HK$41.5464 million. Citigroup released a research report stating that they are lowering their earnings forecast for CHINASOFT INT'L in 2024 by 15%, to account for potential employee rewards or stock option expenses. However, they are raising their revenue forecast for 2025 and 2026 by 2% and roughly maintaining their profit forecast to reflect the progress of new businesses, while expecting a moderate recovery in traditional businesses. The bank expects that the AI engine/agent programs developed by HarmonyOS application developers for Huawei and other corporate clients will become supportive of DRIVE. Due to the gradual recovery and improvement of HarmonyOS and AI applications, the bank has raised the target price for CHINASOFT INT'L from HK$4.1 to HK$5.1.