B-SOFT(SZ:300451)2024-10-31 02:41Investment Rating - The report maintains a "Buy" rating for the company, with a market price of RMB 5.20 and a sector rating of "Outperform" compared to the market [1]. Core Views - The company is expected to benefit from the recent government policy aimed at debt reduction, which is anticipated to improve its financial statements. The policy is expected to alleviate the debt burden on local governments, enhancing the company's cash flow and receivables collection [3]. - The acceleration of public data resource marketization is expected to benefit the company, as it provides various data services across multiple fields, including clinical research and insurance underwriting [3]. - The company has established multiple collaborations with Huawei in the healthcare information sector, which is expected to enhance its technological capabilities and service offerings [3]. - The earnings per share (EPS) estimates for 2024-2026 are projected to be RMB 0.14, RMB 0.20, and RMB 0.26, respectively, with corresponding price-to-earnings (PE) ratios of 36X, 26X, and 20X [3]. Financial Summary - The company reported a revenue of RMB 1.17 billion for the first three quarters of 2024, reflecting a year-on-year growth of 1.0%. However, the net profit attributable to the parent company decreased by 42.3% to RMB 52.75 million [3]. - The projected revenue for the years 2024 to 2026 is expected to grow from RMB 1.80 billion to RMB 2.48 billion, with growth rates of 11.4%, 16.7%, and 17.9%, respectively [4]. - The net profit for the same period is projected to increase significantly from RMB 219 million in 2024 to RMB 395 million in 2026, indicating a growth rate of 498.0% in 2024 [4][6]. - The company's EBITDA is expected to rise from RMB 284 million in 2024 to RMB 449 million in 2026, reflecting a strong growth trajectory [4][6].