B-SOFT(SZ:300451) Tianfeng Securities·2024-11-14 00:22Investment Rating - The report maintains a "Buy" rating for the company, with a target price reflecting a potential upside of over 20% within the next six months [7][15]. Core Insights - The company is steadily advancing its cloud transformation strategy, leveraging data services and AI innovations to enhance its offerings [1][2]. - In Q3 2024, the company reported a revenue of 442 million yuan, a year-on-year decrease of 2.35%, and a net profit attributable to the parent company of 25 million yuan, down 62.33% year-on-year [1]. - The healthcare sector remains robust, with revenue reaching 1.12 billion yuan in the first three quarters of 2024, accounting for over 95.89% of total revenue, marking a year-on-year growth of 6.19% [2][4]. Financial Performance Summary - For the first three quarters of 2024, the company achieved total revenue of 1.169 billion yuan, a slight increase of 1.01% year-on-year, while net profit attributable to the parent company was 53 million yuan, down 42.27% year-on-year [1]. - The overall expense ratio for the first three quarters was 35.48%, a decrease of 2.96 percentage points year-on-year, with sales, management, and R&D expense ratios at 7.35%, 14.89%, and 15.87%, respectively [1]. - The company expects net profits for 2024-2026 to be 150 million, 216 million, and 305 million yuan, respectively, with corresponding P/E ratios of 60, 42, and 30 [3]. Strategic Developments - The company has signed 20 new contracts worth over 10 million yuan each in the healthcare sector and has assisted seven hospitals in passing electronic medical record evaluations [2]. - The new generation product HI-HIS is being actively promoted, with 71 ongoing projects, over 70% of which are in tertiary hospitals [2]. - The company has established a partnership with Huawei for deep collaboration on the HarmonyOS version of its healthcare app, which integrates health services in the Tongxiang area [3][5]. Market Position and Valuation - The company is recognized as one of the first information technology vendors in the healthcare sector to receive native development certification from Kunpeng [3]. - The financial projections indicate a recovery in the healthcare IT demand, with expected revenue growth rates of 11.20%, 10.60%, and 10.30% for 2024, 2025, and 2026, respectively [11].