Core Viewpoint - Goldman Sachs has downgraded Mingyuan Cloud's revenue forecasts for 2025 to 2027 by 9% to 12% due to disappointing mid-term performance and ongoing pressures in the Chinese real estate sector, while anticipating recovery in revenue growth from overseas business and AI initiatives in the medium term [1] Company Performance - Mingyuan Cloud's mid-year performance was below expectations, with a 16% year-on-year decline in revenue, which was worse than both Goldman Sachs' and market forecasts of a 10% decline [1] - Core cloud service revenue fell by 14%, and most cloud business revenues did not meet expectations [1] - Despite the underperformance, the company recorded adjusted net profit for the first time since 2022, amounting to 33 million RMB [1] Cost Management and Profitability - The company has terminated loss-making product lines and implemented effective cost control measures, resulting in a gross margin that exceeded Goldman Sachs' expectations [1] - Adjusted operating expenses decreased by 20% year-on-year, contributing to the adjusted net profit [1] Future Outlook - Goldman Sachs raised the adjusted net profit margin forecast for 2027 by 1.6 percentage points, and increased the target price from HKD 2.25 to HKD 2.55, while maintaining a "Neutral" rating [1]
高盛：升明源云目标价至2.55港元 维持“中性”评级