Zhitong Financial APP learned that Credit Suisse issued a research report reiterating that China soft International (00354) "outperformed the market" rating, raising its target price by 27% from HK $12.2 to HK $15.50, and raising its earnings per share forecast for 2022-23 by 2-4% to reflect higher income, mainly driven by Huawei and other major customers under the trend of Hongmeng and digitization.

The group's guidance on revenue and earnings this year increased by 25-30 per cent and 30 per cent respectively compared with the same period last year, while emerging businesses grew at an average compound annual growth rate of 50-60 per cent over the next three years, and Hongmeng's contribution is expected to increase from single-digit growth to 30-40 per cent in the future. The bank believes that the group's largest customer is committed to software solutions to improve its ecosystem in the Internet of things, automotive and cloud computing. The Group is one of the main beneficiaries of the digitization trend, and it is estimated that its gross profit margin will also improve under a better business portfolio.