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