Investment Rating - The report assigns a "Buy" investment rating for the company, indicating a positive outlook for its stock performance [7]. Core Insights - The company is positioned as a leading software and information service provider in China, focusing on digital innovation and technology services across various industries, including telecommunications, internet services, finance, and manufacturing [3][4]. - The company has established a deep partnership with Huawei, benefiting from its ecosystem and contributing to the development of various technologies such as HarmonyOS, Euler, and Gauss [4][5]. - The acquisition of Tongfang Computer and Tongfang International has enhanced the company's hardware capabilities, allowing it to create an integrated software and hardware ecosystem [6]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 175.81 billion yuan, with a net profit of 5.34 billion yuan. The revenue from digital innovation and strategic emerging industries accounted for 47.48% and 36.47% of total revenue, respectively [3]. - For Q1 2024, the company reported revenues of approximately 54.4 billion yuan, but a net loss of 2.77 billion yuan, primarily due to integration costs from recent acquisitions and market fluctuations [3][4]. Market Position - The company has consistently been Huawei's largest customer from 2018 to 2021, with revenue from this partnership increasing to 6.437 billion yuan, representing 36.61% of total revenue [4]. - The company has launched several products and solutions in collaboration with Huawei, including the SwanLinkOS operating system and various AI PC products, positioning itself as a key player in the digital transformation landscape [5][6]. Future Projections - The report forecasts revenue growth for the company, projecting revenues of 302.66 billion yuan in 2024, 349.12 billion yuan in 2025, and 402.38 billion yuan in 2026, with corresponding EPS of 0.73, 0.97, and 1.18 yuan [7][9]. - The company is expected to maintain a strong market presence and continue benefiting from its strategic partnerships and technological advancements [7].
软通动力：公司动态研究报告：华为鸿蒙生态深度合作，开启“软硬一体”新生态模式