BOFA Securities: Raises CHINASOFT INT'L (00354) target price to HK$6.4, reiterates "buy" rating.

Bank of America Securities released a research report stating that with the improvement in demand in the second half of last year, it is expected that CHINASOFT INT'L (00354) will see a revenue recovery this year. The bank estimates that the company's total average number of employees this year is about 75,000, an increase of 3% year-on-year, indicating a steady recovery in the Information Technology Outsourcing (ITO) business. At the same time, the company's emerging businesses are growing steadily, with rapid expansion in revenue from artificial intelligence products and services. Taking into account the relatively moderate recovery pace, the bank has lowered its profit forecast for ChinaSoft International for the next two years by 3% to 8%, raised its target price from HK$5.7 to HK$6.4, reiterated a "buy" rating, and is optimistic that the company will achieve revenue growth recovery this year and have better profit prospects, as well as continuing stock repurchases.