Sinosoft(SH:603927) SINOLINK SECURITIES·2025-04-13 03:23Investment Rating - The report maintains a "Buy" rating for the company, expecting a significant price increase over the next 6-12 months [5][13]. Core Insights - The company reported a revenue of 6.671 billion RMB for 2024, a year-on-year increase of 2.6%, but the net profit attributable to shareholders decreased by 45.8% to 355 million RMB [2]. - The decline in insurance IT revenue by 15.3% to 3.047 billion RMB is attributed to the insurance industry's transformation and adjustments in IT spending by some clients [3]. - Non-insurance IT revenues in finance, government, and healthcare sectors showed strong growth, with increases of 32.4%, 20.4%, and 37.3% respectively [3]. - The company has improved cost control and cash flow management, with a 3.1% reduction in employee numbers and a significant increase in operating cash flow by 538.7% to 1.249 billion RMB [4]. - The company is actively pursuing AI applications across various sectors, including a partnership with Huawei for insurance industry AIGC applications [4]. Summary by Sections Performance Review - In 2024, the company achieved a revenue of 6.671 billion RMB, a 2.6% increase year-on-year, while the net profit attributable to shareholders fell to 355 million RMB, a 45.8% decline [2]. Operational Analysis - The share of non-insurance industry revenue has increased, but integrated business has negatively impacted gross margins, which decreased by 5.7 percentage points to 25.8% [3]. - The company reported a significant increase in system integration business revenue, which grew by 35.7% to 16.67 billion RMB [3]. Profit Forecast - Revenue projections for 2025-2027 are 7.468 billion RMB, 8.434 billion RMB, and 9.556 billion RMB, with expected growth rates of 11.95%, 12.94%, and 13.30% respectively [5]. - The forecasted net profit for the same period is 582 million RMB, 765 million RMB, and 956 million RMB, with growth rates of 63.93%, 31.41%, and 25.02% respectively [5].