Chinasoft International Ltd (CFTLF)

[StockpickerCAPC]

Everbright Securities: Give China Software International (00354.HK) a "Buy" rating and target price of HK$15.20.

source
https://finance.sina.com.cn/stock/relnews/hk/2021-01-27/doc-ikftpnny2283015.shtml

January 27, 2021 15:02 Flush Financial Research Center

Everbright Securities issued an announcement on January 26. Earnings forecasts, valuations and ratings: Based on the better-than-expected Huawei and Honor-related businesses, we respectively raise the 20-21 net profit forecast by 1.0%/0.4% to 92/1.18 billion yuan;

opening the future based on the new business of Huawei Hongmeng's ecology With greater room for growth, the 22-year net profit forecast is revised up by 115% to 1.48 billion yuan, corresponding to a 19-22 ECAGR of 25%. With reference to the 21-year PE47 times of the A-share CITIC Computer Index, we expect that the company is expected to enjoy a higher valuation after the issuance of CDRs and the listing of A-shares.

Based on the 21-year mainland funds are expected to continue to maintain net inflows in the Hong Kong stock market, and the company's future performance is high Growth and the development of new business related to Huawei’s ecology are highly attractive. We expect that the company’s future valuation discount gap between Hong Kong stocks and A-shares is expected to narrow. We will give 30 times PE in 21 years and raise the target price to 15.2 Hong Kong dollars. Buy rating.