Sinosoft(603927) NORTHEAST SECURITIES·2025-04-30 15:17Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected stock price increase of over 15% within the next six months [11]. Core Insights - The company experienced short-term revenue and profit fluctuations due to the IT spending cycle of downstream clients, with a revenue of 6.671 billion yuan in 2024, a year-on-year increase of 2.59%, and a net profit of 355 million yuan, a year-on-year decrease of 45.76% [1]. - The revenue from the insurance IT sector decreased to 3.047 billion yuan, down 15.31% year-on-year, while non-insurance IT revenue increased significantly, particularly in non-insurance finance (up 32.43%), government IT (up 20.38%), and healthcare IT (up 37.31%) [1]. - The company is actively implementing its "Insurance+" strategy, generating direct business income of 123 million yuan in 2024, focusing on areas such as insurance product pricing and automated claims processing [2]. - Revenue projections for 2025-2027 are estimated at 7.271 billion yuan, 8.206 billion yuan, and 9.829 billion yuan, respectively, with corresponding net profits of 388 million yuan, 478 million yuan, and 657 million yuan, reflecting growth rates of 9.36%, 23.17%, and 37.35% [3]. Financial Summary - In 2024, the company reported total revenue of 6.671 billion yuan, with a projected increase to 7.271 billion yuan in 2025, representing a growth rate of 8.98% [4]. - The net profit for 2024 is expected to be 355 million yuan, with a forecasted increase to 388 million yuan in 2025, indicating a recovery from the previous year's decline [4]. - The company's gross margin is projected to decline to 25.80% in 2024, down 5.65 percentage points year-on-year, primarily due to the shift in revenue mix towards system integration services [1][4]. Market Data - As of April 29, 2025, the company's closing stock price was 18.73 yuan, with a 12-month price range between 15.09 and 29.15 yuan [5]. - The total market capitalization is approximately 15.565 billion yuan, with an average daily trading volume of 5 million shares [5].