Chinese brokerage CICC has raised its price target on Chinasoft International (00354) to HK$4.3, implying roughly 19% upside from its previous target, while maintaining a "Neutral" rating on the stock. The revision follows the company's recent contract win and its faster-than-expected AI business expansion.

In a research report, CICC highlighted that Chinasoft International (00354) secured a landmark smart transportation project in Xi'an worth RMB 245 million. The project scope encompasses AI-powered collaborative dispatching, city-wide intelligent perception, and deployment of OpenHarmony-based devices, showcasing the company's end-to-end delivery capability spanning from sensing terminals to intelligent decision-making systems. The brokerage believes this project could evolve into a replicable template for other cities pursuing similar smart city initiatives.

Factoring in the accelerated growth of its AI segment, CICC has revised up its revenue forecasts for Chinasoft International (00354) by 7.8% and 7.9% for 2026 and 2027, respectively, with projected revenues now at RMB 18.73 billion and RMB 19.9 billion. However, the brokerage kept its 2026 net profit attributable to shareholders unchanged, citing potential volatility in investment and other income streams. For 2027, the net profit forecast has been increased by 18.5% to RMB 574 million.

The brokerage reiterated its "Neutral" rating, noting that while AI-related business momentum is driving a recovery in growth, the valuation remains balanced. The target price increase to HK$4.3 reflects the improved earnings outlook stemming from the AI-driven business repair.