CHINASOFT INT'L (00354) experienced a significant rally during Thursday's morning trading, climbing more than 7% before settling with a 5.13% gain at HK$4.10 per share, with trading volume reaching HK$146 million.

The surge follows the company's recent announcement that it, as the lead entity of a consortium, has successfully secured the bid for the 2026-2027 Smart Transportation Construction Project for Xi'an's Traffic Management Detachment. The total contract value amounts to RMB 245 million, marking a milestone in the company's "AI + OpenHarmony" dual-engine strategy achieving large-scale commercial deployment within the core vertical of smart transportation.

CICC analysts highlighted that this successful bid demonstrates the company's end-to-end delivery capabilities, spanning from sensor-based perception to intelligent decision-making systems. The project is expected to serve as a benchmark solution that could potentially be replicated and rolled out across other cities.

Additionally, the company has previously established the FDE Innovation Laboratory in collaboration with Moonshot AI, leveraging the allmeta platform and the Kimi model as foundational infrastructure. The initial phase focuses on the energy and power sector, with both parties agreeing to share revenue generated from Token consumption of the Kimi model along with other derivative income streams.

CICC believes this partnership could effectively combine Moonshot AI's model capabilities with the company's industry expertise and delivery strengths, potentially transitioning its business model from one-time project fees to a sustainable Token-based recurring revenue model. However, the continued contribution to financial performance will depend on the pace of project implementation going forward.