Company Profile　　B-Soft Co., Ltd. is a China-based company principally involved in medical and health information construction. It operates three businesses.　　The medical and informatization application software business includes hospital information application software and public health information application software.　　The information technology-based system integration business includes computer information equipment system integration business and intelligent network cabling engineering integration business.　　The information technology (IT) operation and maintenance service business includes financial self-service equipment professional technical service business and medical industry's maintenance technology service business.　　The Company mainly conducts its businesses in domestic market. (Source: MarketScreener)　　Investment Highlights　　As a leading player of medical and health information construction, B-Soft Co., Ltd. (“B-Soft”/ the company) maintains a strong impetus for steady growth.　　Established in 1997, based on the business strategy of “one body and two swings”, the company, taking medical and informatization application software business, its conventional business, as a cornerstone, has expanded its business to IT-based system integration and intelligence innovation.　　As a leading player of medical and informatization construction, B-Soft, benefited from the continuous expansion of demand, has demonstrated a decent growth in its past performance, with the CAGR of revenue and net profit from 2017 to 2021reaching 13.29% and 26.27%, respectively.　　Meanwhile, the company has continued to better its equity structure to build an ecosystem of great health. In May of 2022, Philips became its second largest shareholder, with a 10% stake in the company. 　　The company’s medical and informatization application software business, its conventional business as well as its cornerstone, will embrace a comprehensive growth.　　Thanks to the continuous catalyst of favorable policies and the post-epidemic era, the demand is expected to recover. And the medical and health information construction will also bring in new demand. 1) As for hospitals, the company has developed capabilities with “one-stop” solutions, and has been working on the core software for years including HIS, CIS. 2) As for public health, the company, complying with industrial policies and taking clients’ demand into consideration, has promoted the connectivity of information and continued to explore new business modes. 3) In terms of medical insurance, with the platforms for medical insurance becoming more available and the acceleration of DRG/DIP pilots, the company has grasped good　development opportunities. 　　The company has actively expanded its two swings. The information technology-based system integration and intelligent network cabling engineering integration are two innovative businesses to which it has attached great importance.　　1) As for the IT-based system integration, the company has deepened cloud strategy and internet-based medical care strategy, promoted the implementation of its “cloud 2.0” strategy and the construction of its cloud ecosystem. And Hi-HIS is expected to bring in incremental revenue. 2) In terms of intelligent network cabling engineering integration, the company has expanded product and maintenance services of Internet of Things (IoT), and its 5G medical intelligent products co-developed with HUAWEI have been produced in mass. 3) The company will cooperate with Philip and deepen the synergy in channels and products. CTasy is expected to accelerate the market promotion in 2023.　　Earnings forecast and investment recommendation　　The company will continue to focus on the development of “one body two swings” to grasp opportunities in clouding, online development and medical insurance reforms.　　In the meantime, with the cooperation with Philip going deep, the synergy effect is expected to stand out. We revised our forecasts for its net income attributable to shareholders at CNY 53 million in 2022, CNY 450 million in 2023, and CNY 590 million in 2024. Maintain “Outperform”.　　Potential risks　　slower-than-expected deliveries and bid progress due to macroeconomic disruptions; slower-than-expected pilot promotion of health cities and medical insurance reforms; slower-than-expected application promotion of new technologies such as business clouding and intelligence 【免责声明】本文仅代表第三方观点，不代表和讯网立场。投资者据此操作，风险请自担。

   【免责声明】本文仅代表第三方观点，不代表和讯网立场。投资者据此操作，风险请自担。

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