NeuSoft(SH:600718)2024-06-04 10:00Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of 10.80 RMB based on a forward PE of 45 times for 2024 [5][41]. Core Insights - The company achieved a revenue of 10.54 billion RMB in 2023, representing a year-on-year growth of 11.39%, and turned a profit with a net profit attributable to shareholders of 74 million RMB, an increase of 417 million RMB year-on-year [9][39]. - The big health sector maintained a high growth rate of 30%, with revenue from medical health and social security services reaching 2.57 billion RMB, up 29.74% year-on-year [11][39]. - The intelligent vehicle interconnection sector generated revenue of 3.92 billion RMB in 2023, reflecting a year-on-year increase of 9.36% [13][40]. Financial Performance Summary - In 2023, the company reported a gross profit margin (GPM) of 24.20%, an increase of 3.42 percentage points year-on-year [3][9]. - The forecast for 2024-2026 indicates revenues of 11.84 billion RMB, 13.51 billion RMB, and 15.67 billion RMB, with net profits attributable to shareholders of 291 million RMB, 472 million RMB, and 626 million RMB respectively [5][41]. - The company’s GPM is expected to improve to 25.0% in 2024, 25.9% in 2025, and 26.5% in 2026 [3][16]. Business Segment Analysis - The medical health and social security segment is a key focus, with nearly 20 million-level projects signed in 2023, establishing multiple national model cases for county-level medical community construction [11][39]. - The intelligent vehicle interconnection segment continues to expand, with ongoing collaborations with major domestic and international automakers, contributing to increased overall shipments [13][40].