Glonghui November 27 | Everbright Securities released a research report saying that on November 24, China Software International Organization Chongqing Changan Automobile Global R&D Center conducted research activities and further shared the company's layout and strategic plans for smart cars and Hongmeng businesses. The bank believes that Changan Automobile, as a number of business partners of Chinasoft International, is expected to further become a potential customer for Chinasoft International to promote the implementation of the open source Hongmeng cockpit project, and jointly promote autonomous and controllable domestic vehicle operating system products and technology upgrades. Considering that it will still take time for the company's major customer business to recover, the bank lowered Chinasoft International's net profit from 23-24 by 4%/4% to 88/1.08 billion yuan, keeping the 25-year net profit forecast unchanged, and maintaining the “increased holdings” rating. With the general trend of “software-defined cars,” the role of IT service companies is becoming increasingly important. Automotive electronic architecture innovation brought about by the “new four modernizations” trend, automotive hardware systems are gradually becoming consistent, and “software-defined automobiles” has become an important development trend. In the process of transformation, traditional car companies often face problems such as lack of new talents, high transformation costs, low software development efficiency, and uncontrollable quality. At the same time, the automotive industry has high requirements for reliability, safety, and customization. Therefore, software companies with the ability to develop low-level general software and platform service layers and can continue to carry out technological innovation and in-depth customized services are expected to usher in development opportunities. Looking ahead, Chinasoft International said that the open source Hongmeng cockpit will be divided into “three steps”: the first step is to enable OpenHarmonyOS to run Android containers at the bottom; the second step is to migrate basic applications such as vehicle control and desktops to Hongmeng OS; and the third step is to migrate main applications to Hongmeng OS and keep only a few third-party applications using Android containers. The bank believes that Changan Automobile, as a number of business partners of Chinasoft International, is expected to further become a potential customer for Chinasoft International to promote the implementation of the open source Hongmeng cockpit project, and jointly promote autonomous and controllable domestic vehicle operating system products and technology upgrades.