Core Viewpoint - The report from CICC expresses optimism about the profitability of Beisen Holdings (09669) due to its SaaS model, maintaining an "outperform" rating and a target price of HKD 11.5, with revenue increasing to RMB 516 million year-on-year, driven by strong performance in core cloud HCM solutions and rapid commercialization of AI products, with new contract amounts exceeding RMB 26 million [1] Performance Summary - Beisen Holdings reported a revenue increase of 18.2% year-on-year to RMB 516 million for 1HFY26, with adjusted net profit turning positive at RMB 19.59 million, compared to a loss of RMB 34.16 million in the same period last year, aligning with the company's previous earnings guidance [1] Development Trends - Product revenue remains robust, with AI product commercialization continuing to advance. In 1HFY26, revenue from cloud HCM solutions grew by 22.2% year-on-year to RMB 414 million, accounting for 80.3% of total revenue (up 2.7 percentage points year-on-year). Annual recurring revenue (ARR) increased by 22% to RMB 956 million, with average revenue per user (ARPU) rising by 6.5%. The subscription revenue retention rate (NDR) reached 105%, and customer retention rate stood at 83%. The core product, Core HCM solution, saw ARR growth of 27%, increasing its share of total ARR to 58%. In the AI segment, new contract amounts for AI Family products exceeded RMB 26 million, covering over 800 enterprise clients. The company launched the AI Family 2.0 product, featuring 10 AI agents across more than 50 HR business scenarios. Management indicated that new contract amounts for AI-related products are expected to exceed RMB 60 million in FY26 and contribute 5%-10% of total revenue in FY27 [2] Profitability Improvement - The adjusted gross margin for 1HFY26 reached 69.9%, an increase of 4.2 percentage points year-on-year, primarily due to improved gross margins from product subscription business driven by economies of scale. The adjusted net profit margin reached 3.8%, up 11.6 percentage points year-on-year, attributed to margin improvement and effective cost control. However, due to seasonal factors, the company's operating cash flow showed a net outflow of RMB 86.15 million. Looking ahead, management expects the adjusted net profit margin to reach 5% in FY26 and nearly 10% in FY27 [3]
中金：维持北森控股(09669)“跑赢行业”评级 AI产品商业化持续推进