Group 1 - Overseas institutions conducted research on 84 listed companies in the past 10 days, with Optoelectronics being the most focused, receiving attention from 58 overseas institutions [1] - A total of 437 companies were researched by institutions, with securities companies leading at 395, followed by fund companies at 301 [1] - The average stock price of companies researched by overseas institutions increased by 1.33% over the past 10 days, with the best performer being Huasheng Lithium with a cumulative increase of 121.01% [1] Group 2 - The second most researched company was BeiGene, which had 43 overseas institutions participating in its research [1] - Among the stocks that experienced price declines, Lingzhi Software had the largest drop at 14.58% [3] - The research highlighted various sectors, including power equipment, electronics, and machinery, with notable stock performances across these industries [1][2][3]

Group 1 - On November 17, a total of 12 companies were investigated by institutions, with 6 companies being focused on by funds, including Fuxiang Pharmaceutical, Lingzhi Software, and Fengyuan Co., Ltd. [1] - Fuxiang Pharmaceutical received the most attention, with 12 funds participating in its investigation, while Lingzhi Software and Fengyuan Co., Ltd. had 11 and 5 funds involved, respectively [1][2] - Among the companies investigated, there were 3 from the Shenzhen Main Board, 2 from the ChiNext Board, and 1 from the Sci-Tech Innovation Board [1] Group 2 - In terms of total market capitalization, 2 companies had a market value of less than 10 billion yuan, namely Lingzhi Software and Fengyuan Co., Ltd. [2] - Over the past 5 days, 4 of the investigated stocks increased in value, with Fuxiang Pharmaceutical and Fengyuan Co., Ltd. showing significant gains of 56.90% and 33.24%, respectively [2] - The stocks that experienced declines included Lingzhi Software and Huali Chuantong, with declines of 14.86% and 3.13%, respectively [2][3] Group 3 - The latest closing prices and 5-day price changes for the investigated companies are as follows: Fuxiang Pharmaceutical at 21.15 yuan (+56.90%), Lingzhi Software at 15.13 yuan (-14.86%), Fengyuan Co., Ltd. at 23.85 yuan (+33.24%), and Shiji Information at 10.03 yuan (+7.16%) [3] - The highest net inflow of funds over the past 5 days was seen in Fengyuan Co., Ltd. with 450 million yuan, followed by Guangdong Hongda and Shiji Information with net inflows of 186 million yuan and 94.91 million yuan, respectively [2]

Summary of the Conference Call on Camerit Software Company Overview - **Camerit Software** is a leading financial IT provider in China's capital markets, offering integrated management systems for banks and large brokerages, managing assets exceeding 70 trillion RMB and processing daily fund flows over 1.4 trillion RMB [2][7][30] - The company focuses on two main market directions: **self-controllable** systems and **digital transformation** [2][12] Key Points and Arguments - **Market Position**: Camerit is recognized as the top provider in the capital market trading system solutions, having been ranked first by both CCID and IDC for two consecutive years [2][14] - **Product Features**: The products support various financial assets including bond repos, foreign exchange, precious metals, and derivatives, covering the entire process from trading strategies to risk control and accounting [2][8] - **Strategic Acquisition**: The acquisition of Camerit by Linzhi Software is aimed at enhancing its financial software development capabilities and expanding its market presence in the domestic financial sector [3][30] - **Industry Demand**: There is a significant demand for replacing foreign systems in over 100 large financial institutions in China, creating a market opportunity worth hundreds of billions [4][15] - **Team Expertise**: Camerit’s team has extensive industry experience, with core members coming from top global financial institutions, enhancing its credibility and client trust [2][13] Additional Important Insights - **Global Trends**: The global market for comprehensive asset management systems has been dominated by European and American companies, with recent mergers indicating high value in such software solutions [9] - **Future Market Opportunities**: The company anticipates strong growth in three key areas: self-controllable systems, digital transformation, and the internationalization of the RMB, particularly in countries along the Belt and Road Initiative [20][21] - **Integration Plans**: Post-acquisition, the focus will be on integrating Camerit’s products into Linzhi’s existing client base and leveraging shared resources for enhanced market penetration [24][25] - **Technical Advantages**: Camerit’s products are fully self-developed with a 100% self-research ratio, utilizing a pure Java architecture, which differentiates it from competitors using C++ [17][26] Conclusion The conference call highlighted Camerit Software's strong market position, extensive product capabilities, and strategic growth opportunities through the acquisition by Linzhi Software. The focus on self-controllable systems and digital transformation aligns with national strategies, positioning the company for significant future growth in both domestic and international markets.

Core Points - Lingzhi Software's stock price decreased by 2.05% on November 14, trading at 15.74 yuan per share with a market capitalization of 6.296 billion yuan [1] - The company has seen a year-to-date stock price increase of 15.68%, but a decline of 8.70% over the last five trading days and 13.89% over the last twenty days [1] - For the period from January to September 2025, Lingzhi Software reported a revenue of 763 million yuan, a year-on-year decrease of 5.57%, and a net profit of 96.746 million yuan, down 21.87% year-on-year [2] Financial Performance - The company has distributed a total of 475 million yuan in dividends since its A-share listing, with 235 million yuan distributed over the last three years [3] - As of September 30, 2025, the number of shareholders increased by 14.67% to 19,900, while the average circulating shares per person decreased by 12.79% to 20,056 shares [2] Shareholder Composition - The sixth largest circulating shareholder is Hong Kong Central Clearing Limited, holding 7.9709 million shares as a new shareholder [3] - The seventh largest circulating shareholder is Huabao CSI Financial Technology Theme ETF, holding 3.2832 million shares, also a new shareholder [3] Business Overview - Lingzhi Software, established on January 3, 2003, specializes in providing customized software development services and application software solutions for the financial industry [1] - The company's main revenue sources include software development services (95.72%), domestic industry application software solutions (3.96%), and other supplementary services (0.31%) [1] - The company is categorized under the software development industry, focusing on vertical application software, and is associated with concepts such as domestic software, big data, Baidu concept, Xinchuang concept, and artificial intelligence [1]

Core Viewpoint - Lingzhi Software's proposed acquisition of leading domestic financial IT supplier Kaimiride is a significant asset restructuring plan aimed at creating a comprehensive fintech service ecosystem covering multi-tier capital markets, which is expected to substantially enhance the company's performance [1] Group 1: Company Overview - Kaimiride primarily provides software products and services in areas such as fund trading, risk management, liquidity management, digital transformation, and AIGC to over 100 domestic and international financial institutions, including major banks and non-bank financial entities [2] - The company's strong client base, which includes six major state-owned commercial banks and various other financial institutions, provides a solid foundation for sustained revenue growth [2] Group 2: Revenue Characteristics - Kaimiride's revenue recognition exhibits significant seasonality, with IT spending in the banking sector typically showing a "front-low, back-high" pattern, leading to higher revenue recognition in the fourth quarter [2][3] - Analysis of listed banking IT companies indicates that a substantial portion of annual revenue and net profit is concentrated in the fourth quarter, suggesting that investors should focus on annual performance rather than quarterly results [3] Group 3: Industry Trends - The banking IT sector is experiencing positive fundamentals, benefiting from the deepening of financial innovation and the accelerated digital transformation within the banking industry [3] - The ongoing advancements in artificial intelligence, particularly in deep learning and natural language processing, are driving innovation in the AIGC space, prompting Lingzhi Software to upgrade its AI strategy from application to ecosystem building [4] Group 4: Strategic Implications - The integration of Kaimiride is expected to enhance Lingzhi Software's product matrix across various systems in financial institutions, addressing the needs for self-control, digital transformation, and AI applications [4] - This acquisition is anticipated to create a more robust "AI+" ecosystem, potentially serving as a new growth engine for the company's high-quality development [4]

Market Overview - The software development sector experienced a decline of 1.4% on November 12, with Fangzhi Technology leading the drop [1] - The Shanghai Composite Index closed at 4000.14, down 0.07%, while the Shenzhen Component Index closed at 13240.62, down 0.36% [1] Top Performers - Anke Technology (600654) saw a significant increase of 10.00%, closing at 4.29, with a trading volume of 1.643 million shares and a transaction value of 690 million [1] - Yingfang Software (688435) rose by 8.61%, closing at 57.65, with a transaction value of 531 million [1] - Gaoweida (300465) increased by 6.49%, closing at 22.65, with a transaction value of 953 million [1] Underperformers - Fangzhi Technology (300235) experienced a sharp decline of 14.25%, closing at 14.20, with a trading volume of 374,200 shares and a transaction value of 553 million [2] - Caishi Information (688631) fell by 12.20%, closing at 66.80, with a transaction value of 409 million [2] - Lingzhi Software (688588) decreased by 10.27%, closing at 16.08, with a transaction value of 26.66 million [2] Capital Flow - The software development sector saw a net outflow of 4.136 billion from institutional investors, while retail investors contributed a net inflow of 3.6 billion [2] - The overall capital flow indicates a mixed sentiment, with institutional investors withdrawing funds while retail investors increased their positions [2] Individual Stock Capital Flow - Anke Technology had a net inflow of 206 million from institutional investors, while retail investors saw a net outflow of 103 million [3] - Gaoweida experienced a net inflow of 10.9 million from institutional investors, with retail investors also seeing a net outflow of 98.15 million [3] - Yingfang Software had a net inflow of 85.036 million from institutional investors, while retail investors faced a net outflow of 42.87 million [3]

Group 1 - The internet finance sector experienced a decline in the afternoon trading session on November 12, with notable drops in stock prices [2] - Lingzhi Software fell over 10%, while Dazhihui dropped more than 9% [2] - Other companies such as Zhinan Compass, Sichuan Wisdom, and Tianrongxin also saw significant declines [2]

Group 1 - Lingzhi Software (688588.SH) has resumed trading and announced a merger plan to acquire 100% equity of Kaimiride (Suzhou) Information Technology Co., Ltd. through a combination of issuing shares and cash payment, along with raising supporting funds [2][4] - This marks the second major acquisition attempt by Lingzhi Software in three years, shifting focus from overseas to the domestic market, driven by challenges related to reliance on Japanese business and the need for domestic growth [2][3] - Kaimiride, an IT solutions provider focused on the domestic banking sector, is currently facing performance declines and industry price competition, raising questions about the potential synergies from the merger with Lingzhi Software [2][5] Group 2 - Lingzhi Software's previous acquisitions included a cash purchase of 155 million yuan for Zhiming Software Holding (BVI) in late 2023, and a real estate acquisition in Japan for approximately 198 million yuan in 2024, increasing its dependence on the Japanese market [3] - The company's revenue from Japanese operations exceeded 90% in 2024, but this reliance has led to significant volatility in net profit due to fluctuations in the yen exchange rate [3][5] - The shift to domestic acquisitions aims to enhance the company's revenue from domestic financial institutions and reduce risks associated with the Japanese market [3][5] Group 3 - Kaimiride, established in 2013, serves about 70% of large and medium-sized financial institutions in China and holds the largest market share in the banking IT solutions sector [6] - The company has faced challenges in its listing attempts, with its revenue and net profit showing a downward trend from 2023 to 2025, indicating operational difficulties [6][10] - The competitive landscape in the financial IT sector is intensifying, with companies like Kaimiride experiencing pressure from aggressive pricing strategies as firms vie for market share [9][10]

Core Viewpoint - Lingzhi Software aims to reduce reliance on overseas markets and enhance performance stability through the acquisition of 100% equity in Kaimiride [1][3] Group 1: Acquisition Details - Lingzhi Software plans to acquire Kaimiride through a combination of issuing shares and cash payments, with the goal of making Kaimiride a wholly-owned subsidiary [1][3] - The acquisition is expected to constitute a major asset restructuring, with some transaction parties likely to hold over 5% of the company's shares post-transaction [3] - Kaimiride is a leading financial IT supplier in China, providing integrated solutions for capital markets to over 100 domestic and international financial institutions [3][4] Group 2: Financial Performance - Kaimiride's revenue from 2023 to the first nine months of 2025 has shown a decline, with revenues of 2.92 billion, 2.29 billion, and 1.17 billion respectively, and a net profit of 294.93 million, 263.86 million, and a loss of 2.64 million [2][8] - Lingzhi Software's revenue from Japan accounted for 92.44% of its total revenue in the first half of 2025, indicating a high dependency on the Japanese market [1][7] - Lingzhi Software's financial performance has been under pressure, with a revenue decline of 5.57% year-on-year in the first three quarters of 2025, and a net profit decrease of 21.87% [9][10] Group 3: Market Position and Strategy - The acquisition is intended to enhance Lingzhi Software's domestic revenue share and reduce risks associated with reliance on the Japanese market, thereby improving overall business stability [1][7] - Lingzhi Software's primary revenue source is its software development services for Japan, which accounted for 89.23% of its revenue in 2024 [5][7] - The financial IT market is facing pricing pressures and reduced profit margins due to increased competition, which may impact both Lingzhi Software and Kaimiride [9]

Investment Rating - The report maintains a "Buy" rating for the company, expecting significant growth in the upcoming years [3][11]. Core Insights - The company plans to acquire 100% equity of Kaimiride (Suzhou) Information Technology Co., Ltd. through a share issuance and cash payment, with a share price set at 15.31 RMB per share. The specific transaction price and the ratio of shares to cash payment are yet to be determined [2]. - Kaimiride is recognized as one of the few financial technology companies in the domestic capital market with "independent controllability + overseas compatibility" capabilities. Its core product, VIVA, is an integrated management software platform that covers the entire process of fund management in the financial market [2]. - Successful completion of the acquisition could allow the company to integrate its overseas project management experience with Kaimiride's localized service capabilities, strategically entering the domestic banking market and reducing reliance on the Japanese market [2]. Financial Projections - The company’s projected revenues for 2025 to 2027 are 1.1114 billion, 1.170 billion, and 1.264 billion RMB, with growth rates of 0.0%, 5.0%, and 8.0% respectively. The net profit attributable to the parent company is expected to be 166 million, 176 million, and 191 million RMB, with growth rates of 33.7%, 5.8%, and 8.9% respectively [3][8]. - The projected P/E ratios for the same period are 42.8, 40.4, and 37.2 [3]. Company Overview - The company’s revenue for 2023 is reported at 696 million RMB, with a growth rate of 6.4%. The net profit for the same year is 87 million RMB, reflecting a decline of 38.72% [8]. - The diluted earnings per share for 2025 is projected to be 0.415 RMB, with a return on equity (ROE) of 12.42% [8].