Pinming Software(SH:688109) Haitong Securities International·2025-10-24 11:43Investment Rating - The report initiates coverage with an "Outperform" rating for the company, with a target price of 191.75 yuan per share [4][15]. Core Insights - The company is a leader in the digital construction sector, focusing on enhancing operational efficiency amidst market challenges. The strategic investment from Tongzhi Technology is expected to provide new opportunities for growth in the "AI+" domain [1][4]. - The company has shown resilience in its performance, with a significant increase in net profit and revenue recovery in 2025 [4][31]. Financial Summary - The company is projected to achieve total revenue of 4.81 billion yuan in 2025, 5.32 billion yuan in 2026, and 6.06 billion yuan in 2027, with year-on-year growth rates of 7.5%, 10.7%, and 13.9% respectively. Net profit attributable to the parent company is expected to be 650 million yuan, 1.01 billion yuan, and 1.40 billion yuan for the same years, reflecting growth rates of 106.3%, 55.2%, and 38.6% respectively [3][7][11]. Business Development - The company has a comprehensive product offering in the digital construction field, including digital cost management, construction software, BIM software, smart construction sites, and AI applications. Its user base spans from government to enterprise and project levels [17][18]. - The company is actively expanding its client base and product offerings, with a focus on high-quality clients and infrastructure projects, demonstrating strong performance despite the construction industry's recovery phase [31][33]. Strategic Shareholder Introduction - The company has optimized its shareholding structure by introducing strategic investor Tongzhi Technology, which is expected to enhance its technological capabilities and market competitiveness [20][23][26]. - The strategic partnership aims to leverage AI technologies to drive industrial transformation and create a second growth curve for the company [4][26]. Market Potential - The report highlights the significant growth potential in the construction information technology sector, with China's investment in this area being relatively low compared to developed countries. The company is well-positioned to capitalize on this opportunity [4][31]. - The introduction of AI technologies is anticipated to revolutionize the entire lifecycle of construction projects, from design to operation [11][31]. Financial Performance and Efficiency - The company has demonstrated improved operational efficiency, with a notable increase in net profit margins and cash flow management. The operating cash flow for 2024 is projected to be 85.57 million yuan, indicating strong financial health [36][39]. - The company has implemented cost control measures, resulting in a decrease in expense ratios and improved profitability [36][37]. Conclusion - Overall, the report presents a positive outlook for the company, emphasizing its strategic initiatives, market positioning, and financial resilience, making it an attractive investment opportunity in the digital construction sector [4][15][31].