NeuSoft(600718) 华泰金融·2025-05-16 04:48Investment Rating - The report maintains a "Buy" rating for Neusoft Corp with a target price of RMB 16.17 [2][6]. Core Insights - Neusoft Corp is expected to benefit from AI-driven opportunities, with all four core business segments anticipated to accelerate growth as downstream customer demand recovers [2][3]. - The company has established a strong competitive advantage in the "AI + healthcare" sector, with significant contracts signed in this area [3][4]. - The operating cash flow reached a historical high of RMB 855 million in 2024, reflecting improved cost management and operational efficiency [4][6]. Financial Performance - In 2024, Neusoft's revenue was RMB 11.56 billion, with a net profit attributable to the parent company of RMB 1.156 billion, showing a year-on-year growth of 9.64% [2][6]. - The company's gross margin for 2024 was 24.01%, a slight decrease of 0.19 percentage points from the previous year, primarily due to a decline in the gross margin of the intelligent connected vehicle segment [4][6]. - For the first quarter of 2025, revenue was RMB 1.85 billion, a year-on-year increase of 1.06%, while the net profit attributable to the parent company was a loss of RMB 12 million [5][6]. Revenue and Profit Forecast - Revenue forecasts for 2025, 2026, and 2027 are projected at RMB 13.3 billion, RMB 15.9 billion, and RMB 19.6 billion, respectively [6][12]. - The net profit attributable to the parent company is expected to be RMB 434 million, RMB 525 million, and RMB 716 million for the years 2025, 2026, and 2027, respectively [6][12]. Market Position and Valuation - The report indicates that Neusoft's valuation is aligned with industry averages, with a projected P/E ratio of 42.4 for 2025 [6][14]. - The potential upside from the current closing price of RMB 9.93 to the target price of RMB 16.17 represents a 63% increase [8].