China Software International (0354.HK)It rose strongly in early trading, up more than 12% at one point. As of press time, it rose 10.25% to HK $10.86, or HK $10.7, with a total market capitalization of HK $31.5 billion.
Citic Construction InvestmentAccording to public data and estimates, the number of IOT equipment connections in China will be 12 billion in 2025, and Hongmeng's permeability will increase nonlinearly. It is relatively conservative to assume that Hongmeng 2025 has a permeability of 20%. It is estimated that the hardware market space of Hongmeng in 2025 is 130.8 billion yuan, the software market is about 25% of hardware, and the total market size is about 170 billion yuan. The bank is optimistic about the end of the supply chain in Hongmeng's industrial chain.
China Bank International: maintain China Software International "Buy" rating target price increase by 3.6% to HK $12 the company is expected to benefit from Huawei Hongmeng's new system.
China Bank International released a research report to maintain China Software International's (00354) "buy" rating, raising the target price from HK $11.57 to HK $12, and raising its net profit forecast for this and next year by 2-4 per cent to reflect higher income growth. The bank said the company is expected to benefit from Huawei's Hongmeng 2.0 mobile operating system.
Huawei officially launched its self-developed Hongmeng 2.0 mobile operating system on June 2, which can be used in a variety of smartphone products, the report said. Huawei aims to have 300 million products using Hongmeng system this year. The bank believes that Huawei is the company's largest customer and contributed 57% of last year's revenue; the Hongmeng ecosystem will increase the company's demand for IT services.
Guotai JunanGive China Software International a "buy" rating target price of HK $19.70
Guotai Junan issued an announcement on June 3. Raise the target price to HK $19.70 to maintain the "overweight" rating. According to the company's SP301 plan for each line of business planning, combined with the 2020 annual report data. We raised our profit forecasts for 2021 and 2022 and added profit forecasts for 2023. It is estimated that the net profit of the company from 2021 to 2023 is 12.37,16.92,2.444 billion yuan respectively, and the EPS is 0.43,0.58,0.84 yuan respectively. Under the PE valuation method, the target price will be raised to HK $19.70, and the "overweight" rating will be maintained corresponding to 28 times PE, in 2022.
Citic SecuritiesMaintain the "buy" rating target price of HK $10.6 at Sinoft International.
The bank said that the company plans to issue CDR and list in A shares, further expand financing channels and enhance capital strength, and invest in major businesses such as cloud intelligence business and Hongmeng business, which is expected to lay the foundation for the company to continue to rise. Maintain the 2021 / 2022 EPS forecast of 0.43 yuan / 0.55 yuan, the new 2023 EPS forecast of 0.72 yuan, the current price corresponding to the PE of 17-13-10, according to the corresponding comparable company valuation level and the company exceeds the industry growth attribute, give the company 20 times PE in 2021.