Boss Soft(SZ:300525) Guoyuan Securities·2024-02-01 16:00Investment Rating - The report recommends a "Buy" rating for the company, indicating a positive outlook for its future performance [10][36]. Core Insights - The company has demonstrated rapid growth in its operating performance, with a compound annual growth rate (CAGR) of 49.60% in revenue from 2016 to 2022 and a CAGR of 36.15% in net profit attributable to shareholders [9][40]. - The company is positioned as a leader in the national fiscal information technology sector, focusing on digital procurement, smart finance, and electronic invoicing, leveraging advanced technologies such as big data and artificial intelligence [9][40]. - The digital procurement market in China is substantial, with a low penetration rate of 8.26%, indicating significant growth potential [35][59]. Financial Performance Summary - Revenue projections for 2023-2025 are estimated at 24.28 billion, 30.19 billion, and 36.66 billion yuan, respectively, with net profits expected to be 3.41 billion, 4.56 billion, and 5.84 billion yuan [3][10]. - The company's earnings per share (EPS) are projected to grow from 0.45 yuan in 2023 to 0.78 yuan in 2025, with corresponding price-to-earnings (P/E) ratios decreasing from 29.97 to 17.53 [3][10]. Business Development and Market Opportunities - The company is actively expanding its services in the fiscal electronic invoicing and non-tax revenue sectors, with its solutions covering 31 provinces and regions in China [51]. - The integration of budget management and the promotion of digital invoices are expected to create new growth opportunities, particularly with the implementation of the budget management integration 2.0 standards [9][82]. - The company has launched the "Xiao Bo Procurement Robot," which utilizes AI to enhance procurement efficiency and reduce costs by approximately 15% [63]. Research and Development - The company has consistently increased its R&D investment, maintaining a ratio of over 14% of revenue dedicated to R&D, with more than 34% of its workforce involved in research and development activities [22][24]. Market Position and Competitive Advantage - The company has established itself as a leading electronic procurement service provider, with a strong presence in government, education, and enterprise sectors, and has been recognized with awards for its contributions to government procurement [87][88].