External broker reports(aggregated public sources), CMB International

CMB International

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

External broker reports(aggregated public sources)

Equity Bottom-Up

Chinasoft International / Equity Bottom-Up

<ul><li>Chinasoft delivered a weak set of FY22 results with revenue of RMB20.0bn (+9% YoY) and net profit of RMB759mn (-33% YoY) mainly due to GPM erosion (-3.7 ppts to 23.0%) despite better opex control (opex -2% YoY).</li><li>We think the road to recovery will be slow but 1) lower reliance on Huawei (49% of FY22 revenue vs. 54% in FY21), 2) continued workforce restructuring (-11% YoY in FY22) will help margin recovery.</li><li>Key catalyst being Huawei’s new product launch related to MetaERP and Pangu large AI model. Maintain BUY.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Chinasoft delivered a weak set of FY22 results with revenue of RMB20.0bn (+9% YoY) and net profit of RMB759mn (-33% YoY) mainly due to GPM erosion (-3.7 ppts to 23.0%) despite better opex control (opex -2% YoY).We think the road to recovery will be slow but 1) lower reliance on Huawei (49% of FY22 revenue vs. 54% in FY21), 2) continued workforce restructuring (-11% YoY in FY22) will help margin recovery.Key catalyst being Huawei’s new product launch related to MetaERP and Pangu large AI model. Maintain BUY.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Chinasoft (354 HK) – On a slow road to recovery