Lyon: Downgrade China Software International (00354.HK) to "outperform market", expects contribution from virtual machine business to be evident in time.

Wisdom Financial APP has learned that Lian released a research report stating that considering that the current valuation of China Software International (00354.HK) is not cheap, its rating has been downgraded from "highly confident of outperforming the market" to "outperforming the market", but its target price has been raised from 6.5 Hong Kong dollars to 7.1 Hong Kong dollars. It is expected that government and state-owned enterprises' large-scale procurement orders for Huawei's new PCs will not appear until the end of this year to next year, so the forecasted revenue growth for 2025 has been lowered from 10% to a year-on-year growth of 7.6%, reflecting a delay in revenue contribution from its virtual machine products.