CICC: Raised the target price of China Soft International (00354) to HKD 4.3, maintaining a "Neutral" rating.
Considering that the growth of the AI business is faster than expected, CICC has raised its revenue forecast for China Soft International for 2026/2027 by 7.8%/7.9% to 18.73 billion/19.9 billion RMB.
China International Capital Corporation (CICC) released a research report stating that China Soft International (00354) has won the bid for the 245 million RMB Xi'an Smart Transportation Benchmark Project, which includes AI collaborative scheduling, comprehensive intelligent perception, and deployment of open-source HarmonyOS devices. This demonstrates the companys end-to-end delivery capability from perception terminals to intelligent decision-making and is expected to develop a benchmark solution that can be replicated in other cities. Considering that AI business growth is faster than expected, CICC raised its revenue forecasts for China Soft International for 2026 and 2027 by 7.8% and 7.9% to 18.73 billion and 19.9 billion RMB respectively. Taking into account potential fluctuations in investments and other income, the net profit attributable to the parent company for 2026 remains unchanged, while the forecast for net profit attributable to the parent company for 2027 has been increased by 18.5% to 574 million RMB. The rating is maintained at "Neutral," with the target price raised by 19% to HK$4.3, considering the business growth recovery driven by AI.
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