Group 1 - The core viewpoint of the article is that ChinaSoft International has signed a strategic cooperation agreement with Beijing Silicon-based Fluid Technology Co., Ltd. to jointly develop solutions aimed at accelerating enterprise digital transformation through computing power and AI full-stack services [1] - The cooperation plan includes four core platforms: high-performance AI platform, model service platform, knowledge management platform, and intelligent application development platform [1] - Both companies will provide product and technical support, project implementation services, and customized AI application development to ensure successful project delivery [1] Group 2 - The partnership aims to deepen strategic collaboration and promote intelligent transformation in key industries [1]

Core Insights - The Beijing software industry has experienced a 38% growth in scale over the past three years, with industrial software and AI companies now accounting for over 30% of the sector [1][11] Group 1: Company Innovations - Ruijizhi Interactive has developed a smart campus management system that enhances cross-department collaboration efficiency by 35% and an AI personalized learning platform that improves average student performance by 20% [2] - Ruijikaigao's AI scheduling system at Yangshan Port has increased port turnover efficiency by 18% and improved fault response speed by 50% [3] - A smart operation and maintenance platform developed for a shipbuilding group has achieved a fault prediction accuracy of over 85% and reduced maintenance costs by 20% [5] - Baidu Smart Cloud's deep learning framework has improved automation labeling accuracy to 99% and increased model training efficiency by 40 times [8] - Tencent's digital twin technology has reduced fault response time in Shanghai Metro operations by 35% [9] Group 2: Industry Trends - The integration of low-code and AI technologies is making complex system development more efficient, akin to assembling Lego blocks [2] - The Beijing software industry has formed a "three-core multi-pole" collaborative ecosystem, focusing on basic software development, industrial software clusters, and consumer application innovation [11] - The financial technology sector has seen cross-border payment platforms processing over 100,000 transactions daily, with settlement efficiency improving by over 30% [4] - The modular development architecture supports agile delivery, shortening project cycles by 30% compared to industry averages [4]

Investment Rating - The report maintains a "Buy" rating with a target price of HKD 6.1 per share, indicating a potential upside of 20.6% from the current price of HKD 5.06 [5][7][20]. Core Insights - The company is transitioning into a full-stack AI product and service provider, with significant growth expected from its AIGC (Artificial Intelligence Generated Content) business, which is becoming a key driver of revenue [2][9]. - The company is actively participating in the construction of digital currency systems and exploring opportunities in stablecoins and Real World Assets (RWA) tokenization, leveraging its expertise in big data, AI, blockchain, and cloud computing [4][17]. Financial Performance - For 2024, the company is projected to achieve revenue of RMB 16.95 billion, a slight decline of 1.0% year-on-year, with a net profit of RMB 512.9 million, down 28.1% [8][20]. - The second half of 2024 is expected to show a recovery, with a significant increase in revenue from full-stack AI products and services, which is projected to reach RMB 957 million, accounting for 5.6% of total revenue [2][12]. Strategic Developments - The company is deepening its collaboration with Huawei, enhancing its KaihongOS applications and completing over 200 Huawei cloud CTSP projects, which strengthens its cloud integration and domestic substitution strategy [3][13]. - The company is also focusing on international expansion, establishing a presence in the Asia-Pacific and Middle Eastern markets, and successfully executing projects in digital governance and smart cities [14][16]. Future Projections - Revenue forecasts for 2025 to 2027 are RMB 18.22 billion (+6.1%), RMB 20.01 billion (+9.86%), and RMB 22.32 billion (+11.5%), respectively, with net profits expected to grow significantly during this period [5][20]. - The report emphasizes that the company is in a transitional phase, moving from traditional service adjustments to emerging business growth, supported by national policy initiatives [20].

Group 1 - The article highlights the market capitalization rankings of companies, with Xiaomi Group leading at $178.685 billion, showing a rise of three positions [3] - The second position is held by Yuewen Group with a market cap of $3.874 billion, which has increased by one position [3] - China Software International ranks third with a market cap of $1.793 billion, also moving up by one position [3] Group 2 - PNG Feitian Trust and PNG Qiming Information are ranked fourth and fifth respectively, with market caps of $1.118 billion and $1.057 billion [3] - *ST Dongtong PNG is in sixth place with a market cap of $0.422 billion [3] - Xinyang ranks seventh with a market cap of $0.091 billion, having dropped four positions [3]

事项： 事件：5 月21 日，中国香港特区立法会三读通过《稳定币条例草案》，以在香港设立法定货币稳定币发 行人的发牌制度，完善对虚拟资产活动在香港的监管框架，以保持金融稳定；5 月30 日，中国香港特区 政府在宪报上刊登《稳定币条例》，正式成立法例。 国信计算机观点：1）中国香港《稳定币条例》正式成为法例，稳定币市场规模快速增长，2028 年市场 规模有望达到2 万亿美金；2）中软国际深耕数字化金融领域，面向运营机构、接入机构提供基于自主 研发微服务技术平台Toplink 的数字人民币系统假设及全生态链解决方案，有望受益于稳定币规模增 长；3）投资建议：预计2025-2027 年归母净利润为6.93/9.14/10.45 亿元，对应当前PE 为19/14/12 倍，维 持"优于大市"评级。4）风险提示：基石业务复苏不及预期、稳定币发行规模不及预期、宏观经济波动 等。 评论： 机构：国信证券 研究员：熊莉/艾宪 中软国际深度参与中国香港基建，全面布局海外市场。中软国际深度参与香港启德体育园建设项目，承 建智慧场馆核心业务系统和集成服务，交付了3 个智慧场馆运营管理软件和1 个体育场馆场地预定生产 软件，且包含了 ...

Group 1: Major Contracts and Financial Performance - China Railway Group (00390.HK) recently won multiple major engineering contracts with a total bid amount of approximately RMB 91.2 billion, accounting for about 8.52% of the company's revenue under Chinese accounting standards for 2021 [1] - China People's Insurance Group (01339.HK) reported a total insurance premium income of RMB 452.46 billion from January to August 2022, representing a year-on-year growth of 9.89% [2] - China Coal Energy (01898.HK) announced that its coal sales volume in August reached 25.96 million tons, a year-on-year increase of 1.3%, while coal production was 10.92 million tons, up 22.3% year-on-year [3] Group 2: Share Buybacks and Stake Increases - Bohai Bank (09668.HK) announced that several employees plan to voluntarily purchase at least 25 million H-shares using their own funds, reflecting confidence in the bank's long-term business development [4] - China Communications Construction (01800.HK) disclosed that its controlling shareholder has cumulatively increased its stake by approximately 264.47 million H-shares, representing 1.64% of the company's total issued shares [5] - Shougang Holding (00697.HK) reported that its major shareholder has entered into an agreement to sell 728 million shares to Beijing Guoguan Investment Holdings, which will acquire about 10% of the company's total issued shares [6] Group 3: Market Activities and Corporate Actions - Jianye Real Estate (00832.HK) announced plans to repurchase shares in the open market based on market conditions [7] - China Pacific Insurance (02601.HK) reported cumulative original insurance business income of RMB 290.9 billion from January to August [8] - China Property & Casualty Insurance (02328.HK) reported a premium income of RMB 340.25 billion from January to August, reflecting a year-on-year growth of 9.8% [9]

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [1][5] Core Viewpoints - The Hong Kong Special Administrative Region has officially enacted the "Stablecoin Ordinance," which is expected to enhance the regulatory framework for virtual asset activities and maintain financial stability. The stablecoin market is projected to grow rapidly, potentially reaching a market size of USD 2 trillion by 2028 [2][3] - The company is deeply engaged in the digital finance sector, providing digital RMB system solutions based on its proprietary microservices technology platform, Toplink. This positions the company to benefit from the growth of the stablecoin market [2][6] - The projected net profit attributable to the parent company for 2025-2027 is estimated at CNY 693 million, CNY 914 million, and CNY 1.045 billion, corresponding to current P/E ratios of 19, 14, and 12 times, respectively [2][9] Summary by Relevant Sections Regulatory Developments - The "Stablecoin Ordinance" was passed by the Hong Kong Legislative Council on May 21 and officially published on May 30, establishing a licensing system for stablecoin issuers [2][3] Market Outlook - The global stablecoin market was approximately USD 227.3 billion as of June 3, 2025, with major players like Tether and Circle holding significant market shares of 67.5% and 27.0%, respectively. The market is expected to grow significantly, with forecasts suggesting a potential size of USD 2 trillion by 2028 [3][4] Company Positioning - The company is actively involved in the digital RMB ecosystem, offering comprehensive solutions that cover various operational scenarios, including wallet systems, interconnectivity, and cross-border payment solutions [6][7] - The company is also expanding its international presence, participating in infrastructure projects in Hong Kong and establishing joint ventures in the Middle East to promote digital transformation [7][8]

Investment Rating - The investment rating for the company is "Outperform" [1][5] Core Views - The Hong Kong Special Administrative Region has officially passed the "Stablecoin Ordinance," establishing a licensing system for the issuance of legal tender stablecoins, which is expected to enhance the regulatory framework for virtual asset activities and maintain financial stability [2][3] - The stablecoin market is projected to grow rapidly, with an expected market size of $2 trillion by 2028. As of June 3, 2025, the global stablecoin market size is approximately $227.3 billion, with major players like Tether and Circle holding significant market shares [3] - The company is deeply engaged in the digital finance sector, providing digital RMB system solutions based on its proprietary microservices technology platform, Toplink, which positions it to benefit from the growth of the stablecoin market [6][9] Summary by Sections Regulatory Developments - The "Stablecoin Ordinance" has been officially enacted, which aims to regulate the issuance of stablecoins in Hong Kong and ensure financial stability [2][3] Market Outlook - The stablecoin market is expected to reach $2 trillion by 2028, indicating a robust growth trajectory. The current market size is around $227.3 billion, with Tether and Circle being the dominant players [3] Company Positioning - The company is focused on the digital finance sector, offering comprehensive solutions for digital RMB system construction and ecosystem development, which includes various operational and regulatory scenarios [6][9] - The company is also involved in infrastructure projects in Hong Kong and has established a joint venture in Saudi Arabia to expand its international presence [7]

Summary of Conference Call Notes Company and Industry Overview - **Company**: 中软国际 (China Software International) - **Industry**: ICT (Information and Communication Technology), Software Development, Cloud Computing Key Points and Arguments - **Hongmeng Ecosystem Growth**: The Hongmeng ecosystem is expected to see significant growth, with related revenues projected to double year-on-year by 2025. Although there may be short-term impacts on Huawei's sales, long-term technological iterations are anticipated to enhance user experience [2][4] - **Hongmeng PC Business**: The Hongmeng PC business includes virtual machine software and hardware PCs. Software will be sold to both ToC (Consumer) and ToB (Business) markets, while hardware PCs will initially target B-end customers, with potential future expansion into the ToC market [2][5] - **ICT Spending Trends**: Operators are showing significant incremental spending in the ICT sector, with a concentration of market share leading to sustained growth rates of 40-50%. Central state-owned enterprises are increasing software investments, driven by AI transformation and demand for new projects [2][7] - **China Software International's Financials**: The company's revenue is expected to remain flat compared to 2021, but profit levels are comparable to those in 2016. The company is transitioning towards productization and new business layouts, with a projected compound annual growth rate (CAGR) of 70-80% over the next three years, and an anticipated gradual increase in gross margin [2][7] - **New Business Segment Impact**: The new product-oriented business segment, which includes self-developed products and services, is expected to reach nearly 1 billion in size by 2024, positively impacting the overall retail proportion and gross margin of the company [2][8] - **Huawei Cloud Business**: Huawei's cloud intelligent business has surpassed 40% of its revenue, with the pure product segment estimated at around 1 billion, expected to grow to 2 billion by 2025, representing over 10% of total revenue [2][9] Additional Important Insights - **Employee Planning at Huawei**: Huawei plans to maintain its workforce at approximately 75,000 employees in 2025, aiming for revenue growth without increasing headcount through AI coding tools and cost optimization [3][10] - **Future Development Events for Huawei**: Key events to watch for Huawei in 2025 include the establishment of joint ventures and product launches. Investors should pay attention to mid-term performance reports, with expectations of over 30% annual growth and potential stock buybacks [3][11]

Core Viewpoint - The company is positioned as a core partner of Huawei, focusing on the development of the HarmonyOS ecosystem and AI computing capabilities, which are expected to drive revenue recovery and growth in the coming years [1][2]. Group 1: Business Strategy and Growth - The company anchors its strategy on the "1+3" business matrix, which includes cloud intelligence, HarmonyOS, MetaERP, and computing power, aiming to build a unique ecological position in the wave of self-reliance and AI industrialization [1]. - The company has contributed over 4.85 million lines of code to the open-source HarmonyOS, ranking second in the community, and has developed over 6,000 native applications covering six major industries [1][2]. - The first HarmonyOS PC is set to launch in May 2025, with over 150 dedicated applications and 2,000 integrated ecological applications already adapted [2]. Group 2: AI Development and Market Position - The company positions itself as a "computing power operator + Agent implementer" in the AI sector, operating multiple Ascend intelligent computing centers across cities to enhance utilization through computing power scheduling and model optimization [2]. - The AI business covers the entire stack from cloud to edge, with expectations that AI-related value-added service revenue will become a new growth engine by 2025 [2]. - The company has launched the DeepSeek integrated machine in collaboration with Huawei, combining Ascend computing power with large model capabilities, targeting sectors such as government and finance [2]. Group 3: Financial Projections - Revenue projections for the company are estimated at 17.8 billion, 19.46 billion, and 22.14 billion yuan for the years 2025, 2026, and 2027, respectively, with net profits attributed to ordinary shareholders expected to be 610 million, 730 million, and 890 million yuan for the same years [3]. - The company is compared to peers in the Huawei supply chain, with an average PE ratio of 50x for 2025E, and a target market value of 17 billion yuan is set after applying a 56% discount due to its Hong Kong listing [3].