CS&S(SH:600536) Guohai Securities·2025-05-04 15:06Investment Rating - The report maintains an "Accumulate" rating for the company [1][10] Core Views - The company is expected to benefit from the deepening of the domestic software industry, with a projected revenue growth of 13% in 2024 [1][6] - Despite facing challenges such as intensified market competition and asset impairment, the company is focusing on its core business and accelerating its transformation [6][8] - The company aims to achieve a revenue target of 5 billion yuan in 2025, with a controlled cost-to-revenue ratio [8] Financial Performance Summary - In 2024, the company's revenue was 5.198 billion yuan, a decrease of 22.69% year-on-year, with a net profit attributable to shareholders of -413 million yuan [5][9] - For Q1 2025, the revenue was 640 million yuan, down 8.85% year-on-year, with a net profit of -81 million yuan [5][9] - The company’s revenue from its main software products and services showed mixed results, with a 12.96% increase in revenue from Kirin software [6][7] R&D and Market Strategy - The company is increasing its R&D investment, with R&D expenses accounting for 28.72% of revenue in Q1 2025, aiming to enhance its product offerings and market share [7][8] - The Kirin operating system has achieved significant milestones, including passing security assessments and forming strategic partnerships to enhance compatibility with hardware [6][8] Earnings Forecast - Projected revenues for 2025-2027 are 4.937 billion, 5.416 billion, and 6.021 billion yuan respectively, with net profits expected to recover to 1.05 billion, 2.15 billion, and 3.07 billion yuan [9][10] - The earnings per share (EPS) are forecasted to be 0.12, 0.25, and 0.36 yuan for 2025, 2026, and 2027 respectively [9][10]