CS&S(SH:600536) Minsheng Securities·2025-06-08 07:05Investment Rating - The report maintains a "Recommended" rating for the company [6] Core Insights - The company is strengthening its leading position in the domestic software industry through the introduction of significant industrial investors, including China Mobile Capital and Sinopec Capital, with a capital increase of up to 3 billion yuan for its subsidiary, Kirin Software [2][3] - Kirin Software, a leader in the domestic operating system market, is expected to benefit from the ongoing push for domestic alternatives, with projected revenues of 1.438 billion yuan and net profits of 502 million yuan in 2024, showing growth from 1.273 billion yuan and 422 million yuan in 2023 [3] - The company is positioned as a key player in the national information technology sector, with a comprehensive market, research, and technical service system, focusing on core assets like Kirin Software and maintaining a leading position in the operating system and database markets [4] Financial Projections - Revenue is projected to reach 6.923 billion yuan in 2025, with a growth rate of 33.2% compared to 2024, and expected to continue growing to 8.915 billion yuan by 2027 [5][10] - The net profit attributable to shareholders is forecasted to be 127 million yuan in 2025, increasing to 345 million yuan by 2027, with corresponding PE ratios of 301X, 150X, and 111X for the respective years [5][10] - The company’s gross margin is expected to improve gradually, reaching 38.55% by 2027 [10]