Boss Soft(300525) 中银证券·2024-05-06 09:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation that the company's stock price will outperform the benchmark index by more than 20% over the next 6-12 months [10][19]. Core Views - The company reported a revenue of 2.04 billion RMB in 2023, a year-on-year increase of 6.5%, and a net profit attributable to shareholders of 330 million RMB, up 28.4% year-on-year. The first quarter of 2024 saw a revenue of 260 million RMB, a 15.7% increase year-on-year, but a net loss of 60 million RMB [1][2]. - The proportion of sustainable revenue, including SaaS, has increased to 45% of total revenue, indicating a positive trend in the company's revenue structure [2]. - The company is expanding its smart finance business and has won a bid for a major project in Shanghai, which is expected to enhance its performance [2]. - The company is actively exploring AI applications in its digital procurement business, which has already expanded to 18 provinces and has established a leading position in the industry [2]. Financial Summary - The projected net profits for 2024, 2025, and 2026 are 410 million RMB, 530 million RMB, and 620 million RMB, respectively, with corresponding EPS of 0.54, 0.71, and 0.82 RMB. The PE ratios for these years are expected to be 24X, 18X, and 16X [2][14]. - The company's total revenue is projected to grow from 2.04 billion RMB in 2023 to 3.06 billion RMB by 2026, with a compound annual growth rate (CAGR) of approximately 14.5% [15]. - The gross profit margin is expected to improve from 66.7% in 2023 to 66.6% in 2026, indicating a stable profitability outlook [14][15].