CS&S(SH:600536) Guolian Securities·2024-05-17 12:00Investment Rating - The investment rating for the company is currently not explicitly stated in the provided content, but it suggests maintaining attention due to the company's leading position in the domestic operating system market [6]. Core Viewpoints - The company experienced a significant decline in revenue and profit in 2023, with a revenue of 6.723 billion yuan, down 30.26% year-on-year, and a net profit of -233 million yuan, indicating a shift from profit to loss [2]. - The company plans to raise 2 billion yuan through a private placement to enhance the core competitiveness of its operating system [5]. - The company’s self-developed software revenue showed a slight increase, while industry solutions and service businesses faced substantial declines [3]. - The company’s operating system, Kirin, continues to lead the Chinese Linux market, achieving a revenue of 1.273 billion yuan in 2023, up 10.16% year-on-year [4]. Financial Performance Summary - In 2023, the company reported a revenue of 6.723 billion yuan, with a gross margin of 36.89%, an increase of 5.47 percentage points year-on-year [2]. - The first quarter of 2024 saw a revenue of 703 million yuan, down 42.32% year-on-year, but the net loss narrowed to -111 million yuan [2]. - The forecast for 2024-2026 indicates expected revenues of 6.038 billion yuan, 6.431 billion yuan, and 7.019 billion yuan, with year-on-year growth rates of -10.19%, 6.51%, and 9.14% respectively [6]. - The projected net profit for 2024 is expected to be 114 million yuan, transitioning from loss to profit, with subsequent years showing significant growth [6]. Market Position and Strategy - The Kirin software operating system has maintained its leading market share in China for 12 consecutive years, with significant breakthroughs in key industries such as government, finance, and energy [4]. - The company is focusing on enhancing its operating system capabilities through targeted investments in product development [5].