CS&S(SH:600536) Zheng Quan Zhi Xing·2025-08-28 22:59Core Insights - China Software (600536) reported a revenue increase and a narrowing loss for the first half of 2025, with total revenue reaching 2.242 billion yuan, a year-on-year increase of 13.01% [1] - The company's net profit attributable to shareholders was -74.5263 million yuan, improving by 72.67% compared to the previous year [1] - The second quarter showed a significant revenue growth of 24.99% year-on-year, with total revenue of 1.601 billion yuan and a net profit of 6.0987 million yuan, up 103.77% year-on-year [1] Financial Performance - Gross margin stood at 39.73%, down 9.46% year-on-year, while net margin improved to -0.11%, a 99.17% increase [1] - Total operating expenses (sales, management, and financial expenses) amounted to 546 million yuan, accounting for 24.37% of revenue, a decrease of 14.3% year-on-year [1] - Earnings per share improved to -0.09 yuan, a 71.88% increase year-on-year, while operating cash flow per share was -0.94 yuan, up 35.4% [1] Investment Insights - The company has shown a weak historical return on invested capital (ROIC), with a median of 3.68% over the past decade and a particularly poor ROIC of -5.58% in 2024 [3] - Analysts expect the company's performance for 2025 to reach 127 million yuan, with an average earnings per share forecast of 0.15 yuan [3] Fund Holdings - The largest fund holding China Software is the Jiashi Information Industry Stock Initiation A, with 3.0694 million shares, which increased its position [4] - Other notable funds include Nuon Active Return Mixed A, which reduced its holdings, and several funds that have newly entered the top ten holdings [4]