KEEP(HK:03650) Xin Lang Zheng Quan·2025-09-02 03:48Core Insights - Keep has achieved profitability for the first time in the first half of 2025, driven by a strategic shift to an AI-focused business model [1] - The company has successfully restructured its AI infrastructure and optimized its product offerings, leading to an adjusted net profit of RMB 0.10 billion and a gross margin increase of 6.2 percentage points to 52.2% [1] - The fitness industry in China is experiencing rapid growth, with online and AI-driven solutions expected to unlock new commercial opportunities [1] Group 1 - Keep's "All in AI" strategy integrates hardware and software, creating a synergistic ecosystem that enhances user experience and drives sales [2] - The company aims to improve user satisfaction and average revenue per user (ARPU) through a diverse product matrix centered around AI coaching [2] - Keep's current market valuation is considered low compared to mainstream SaaS products, with significant upside potential as new AI coaching subscriptions are expected to generate over RMB 200 million in annual recurring revenue (ARR) by 2026 [2]