Gelonghui, December 9th | Minsheng Securities research reports indicate that China National Software (600536.SH) is expected to increase its stake in Kylin Software to nearly 50%, further releasing the potential of state-owned enterprise reform. This trade has improved asset liquidity, and the company's financial structure will be more robust and reasonable, enhancing its sustainable operation capability, which is beneficial for optimizing the company's asset structure and providing positive support for its transformation and development. The company will further focus on its main business. It is an important "national team" in the trusted computing field and a core force under China Electronics engaged in internet security. It has established a relatively complete internet security market, R&D, and technical service system, leveraging its own advantages to seize core assets in niche areas such as Kylin Software and Dameng Data, maintaining an industry-leading position in the operating system and database sectors. After this capital increase, the company further strengthens its advantages in the trusted computing field, reinforcing its market position as a leader in domestic operating systems, and through product transformation and specialized development, continuously consolidating its advantages. The recommendation rating is maintained.