Core Viewpoint - The report from Credit Lyonnais indicates a downgrade in the rating of China Software International (00354) from "highly confident to outperform" to "outperform," while raising the target price from HKD 6.5 to HKD 7.1, reflecting a delay in revenue growth due to anticipated large-scale procurement orders from the government and state-owned enterprises for Huawei's new PCs expected by the end of this year to next year [1] Group 1 - The revenue growth forecast for 2025 has been revised down from 10% to a year-on-year increase of 7.6%, indicating a delay in the revenue contribution from its virtual machine products [1] - The long-term development trend of China Software International remains unchanged, with expectations that the launch of Huawei's HarmonyOS personal computers will drive the virtual machine business to become a key focus for development this year [1] - The new growth drivers are expected to take time to materialize, with the virtual machine business anticipated to take longer to contribute to revenue [1] Group 2 - Credit Lyonnais expects a slight improvement in the gross profit margin for China Software International this year, benefiting from the rapid growth of high-margin businesses [1] - The forecast for the first half of the year includes a year-on-year revenue growth of 10.5% and a net profit growth of 10.1% [1]
里昂:降中国软件国际(00354)评级至“跑赢大市” 料虚拟机业务贡献需时显现