HK Stock Market Move | CHINASOFT INT'L (00354) drops over 4%; Goldman Sachs believes the company's profit growth bottomed in 2025 and it will continue to focus on AI-related businesses in the future.

CHINASOFT INT'L (00354) dropped over 4%, falling 4.06% to HK$3.305 as of press time, with a turnover of HK$26.2609 million. Goldman Sachs recently released a research report stating that the bank holds a positive view on CHINASOFT INT'L's business transition from traditional IT outsourcing to internet IT services, and continues to believe that the company's profit growth bottomed in 2025, with forecasts expected to gradually recover through 2028. The forecast net profit compound annual growth rate from 2025 to 2028 is 43%, mainly driven by the business refocusing on AI-related services and the adoption of generative AI to improve operational efficiency. The company continues to benefit from the growth of Huawei products, deploying related products and developing application software based on these platforms to provide enterprises with locally-based AI solutions. The report pointed out that the above net profit forecast upgrade is mainly due to the downward revision of operating expense ratios by 1 percentage point, 0.7 percentage points, and 0.7 percentage points respectively, reflecting improved operational efficiency as AI adoption increases. CHINASOFT INT'L's revenue compound annual growth rate from 2023 to 2025 was 0%, with gross margin declining from 23.4% in 2023 to 20.4% in 2025.