Investment Rating - The report gives a "Buy" rating for the company, indicating an expected stock price increase of over 20% compared to the benchmark index over the next six months [9][12]. Core Viewpoints - The company is a core partner of Huawei and is benefiting from the development of the Harmony and Euler ecosystems. The acquisition of Tongfang Computer has enhanced its hardware capabilities, positioning the company for a new phase of growth [9][8]. - The company has a solid customer base and comprehensive digital technology service capabilities, which have established a competitive advantage in the digital technology service sector [5]. - The company reported a revenue of 17.581 billion yuan in 2023, a year-on-year decrease of 7.97%, and a net profit of 534 million yuan, down 45.15% year-on-year. However, in Q1 2024, revenue increased by 29.65% year-on-year to 5.449 billion yuan, although it reported a net loss [5][10]. Company Overview - The company was established in 2005 and has built a strong foundation in digital technology services, with 30 capability centers and various partnerships to foster innovation [5]. - The company has successfully integrated its operations following the acquisition of Tongfang Computer and Tongfang International, enhancing its full-stack digital technology service capabilities [8]. - The company has been actively involved in the development of the Harmony ecosystem, collaborating with over 400 device manufacturers and helping more than 1,100 products connect to the Harmony ecosystem [7]. Financial Performance - The company’s projected earnings per share (EPS) for 2024, 2025, and 2026 are expected to be 0.89, 1.10, and 1.30 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 44.25, 35.80, and 30.34 [9][10]. - The company’s total revenue is expected to grow significantly in the coming years, with projections of 30.099 billion yuan in 2024, 35.362 billion yuan in 2025, and 40.560 billion yuan in 2026, reflecting a growth rate of 71.20% in 2024 [10][11].
软通动力：华为核心合作伙伴，收购同方“如虎添翼”