On June 4, China Software International fell 5.11% in regular trading to HK$4.46 per share, with trading volume of HK$409 million. The stock had initially surged over 4% before reversing sharply in the afternoon session.
On the news front, the company formally announced on June 3 its entry into the computing power business, planning to procure computing resources to advance its full-stack AI strategy. The business will span three models: hardware resale, computing power leasing, and token-based AI inference services. However, while the company's full-stack AI business achieved 109.2% year-over-year growth reaching RMB 2 billion in sales, annual profit declined 36.7% due to one-time severance costs from workforce optimization and goodwill impairment. Additionally, Morgan Stanley recently downgraded the stock to \"underweight\" with a target price of HK$2.6, citing AI-driven compression of traditional IT outsourcing margins. Southbound capital has also been a net seller, reducing holdings by 26.24 million shares over recent sessions, reflecting ongoing institutional caution toward the stock's transformation risks.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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