B-SOFT(SZ:300451) HTSC·2024-10-24 10:03Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 6.82 [2][6]. Core Views - The company reported a revenue of RMB 1.169 billion for the first three quarters of 2024, reflecting a year-on-year growth of 1.01%, while the net profit attributable to shareholders was RMB 53 million, down 42.27% year-on-year. In Q3 2024, revenue was RMB 442 million, a decline of 2.35% year-on-year, and net profit was RMB 25 million, down 62.33% year-on-year [2]. - The company's revenue from the medical sector reached RMB 1.121 billion in the first three quarters, showing a year-on-year increase of 6.19%. Recent government debt relief measures are expected to positively impact the company's public health business. The HI-HIS product is set to accelerate its promotion in 2025, enhancing the company's coverage of high-grade hospital clients and driving order growth [2][4]. - The company has maintained good cost control, with a gross margin of 50.14% for the first three quarters of 2024, a decrease of 2.56 percentage points year-on-year. The gross margin for Q3 2024 was 43.45%, down 10.52 percentage points year-on-year, primarily due to an increase in the proportion of integrated projects [3]. Summary by Sections Financial Performance - The company achieved a revenue of RMB 1.166 billion in 2024E, with a projected growth of 3.09% compared to 2023. The net profit attributable to shareholders is expected to be RMB 194 million in 2024E, a significant increase of 428.54% compared to 2023 [7]. - The earnings per share (EPS) is projected to be RMB 0.13 in 2024E, with a return on equity (ROE) of 4.04% [7]. Product Development - The new HI-HIS product is expected to enhance the company's client structure, with over 70 ongoing projects, of which more than 70% are in tertiary hospitals. The acceleration of HI-HIS product promotion in 2025 is anticipated to significantly boost overall order growth [4]. - The company is strengthening its capabilities in medical AI and big data, with several initiatives including the BSoftGPT model and partnerships for exploring AI applications in healthcare [5]. Valuation and Forecast - The company’s net profit forecasts for 2024-2026 are adjusted to RMB 194 million, RMB 302 million, and RMB 391 million respectively. The target price is set at RMB 6.82, based on a 35 times price-to-earnings ratio [6][7].