NeuSoft(SH:600718) AVIC Securities·2024-04-30 08:00Investment Rating - The investment rating for the company is "Buy" [10]. Core Insights - The company has demonstrated resilience in its business layout, achieving continuous revenue growth for three consecutive years. A comprehensive strategic transformation is expected to bring innovative development vitality, further strengthened by stock incentive measures [6][12]. - The company is focusing on opportunities arising from industrial transformation in the digital age, implementing an AIGC + data element strategic transformation aimed at sustainable high-quality development [10][12]. - The company reported a revenue of 10.544 billion yuan in 2023, an increase of 11.39% year-on-year, and a net profit attributable to shareholders of 0.747 billion yuan, up 121.56% [10][12]. Summary by Sections Financial Performance - The overall gross profit margin for 2023 is 24.20%, an increase of 3.42 percentage points year-on-year. The net profit excluding non-recurring items increased by 383 million yuan compared to the previous year, indicating improved operational profitability [12]. - The company achieved a net cash flow from operating activities of 798 million yuan, marking a record of positive operating cash flow since 2003 [12]. Business Segments - In the healthcare and social security sector, revenue reached 2.571 billion yuan, up 29.74%, with nearly 20 major projects signed in key areas such as "Smart Hospitals" [10][12]. - The intelligent automotive sector generated revenue of 3.916 billion yuan, an increase of 9.36%, maintaining deep cooperation with numerous domestic and foreign car manufacturers [10][12]. - The smart city segment reported revenue of 1.623 billion yuan, a slight decrease of 2.41%, while the enterprise interconnection and other income reached 2.433 billion yuan, up 8.64% [10][12]. Strategic Initiatives - The company has initiated a comprehensive strategic transformation, including organizational restructuring and management process simplification, aimed at enhancing operational efficiency [12][13]. - The 2024-2026 performance targets set in the stock option incentive plan include net profit targets of no less than 420 million yuan, 500 million yuan, and 600 million yuan, respectively, reflecting a year-on-year growth of 17.98%, 19.05%, and 20% [13].