Boss Soft(SZ:300525) Haitong Securities·2024-09-05 04:09Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][7] Core Views - The company has shown steady growth in performance, with a notable profit increase in Q2 2024. For H1 2024, the company achieved operating revenue of 717 million yuan, a year-on-year increase of 15.08%, and narrowed its net loss to 37.72 million yuan from 44.82 million yuan in the same period last year [4][7] - The company is actively optimizing its business structure and reducing costs, which has led to an increase in gross margin by 3.17 percentage points in H1 2024. This improvement is attributed to a higher proportion of revenue from technical services and software sales, alongside effective cost control measures [4][7] - The company is making significant progress in its fiscal electronic invoice business, expanding its coverage to all provinces and regions in China. It has also successfully implemented various innovative product cases in multiple provinces [4][6] - The company is focusing on AI applications in digital procurement, enhancing efficiency and decision-making quality in procurement processes. It has launched several AI-driven procurement solutions, including the "Sunshine Public Procurement Model" in collaboration with Huawei [4][7] Financial Summary - For 2024, the company is projected to achieve operating revenues of 2.4 billion yuan, with a year-on-year growth of 17.4%. The net profit is expected to reach 416 million yuan, reflecting a growth of 27.3% [5][9] - The company’s gross margin is expected to remain stable, with projections of 66.8% in 2024, gradually increasing to 67.4% by 2026 [5][9] - The earnings per share (EPS) is forecasted to be 0.56 yuan in 2024, increasing to 0.83 yuan by 2026 [5][9] Business Development - The company is enhancing its SaaS business model, which is contributing to sustainable revenue growth. It has successfully implemented SaaS solutions across various industries, reaching thousands of units in over 24 provinces [6][9] - The company is deeply involved in the construction of integrated fiscal systems, having participated in the development of core business systems for the Ministry of Finance and multiple provincial governments [6][9]