Investment Rating - The report assigns a "Hold" rating to the company with a target price of HKD 6.6, indicating a potential upside of 12.6% from the current price of HKD 5.86 [3]. Core Insights - The company's revenue and profitability are impacted by short-term macroeconomic factors, while the transition to a cloud subscription model is ongoing [3]. - In the first half of 2024, the company reported a revenue of RMB 2.87 billion, a year-on-year increase of 11.9%, with cloud service revenue reaching RMB 2.39 billion, up 17.2% [3]. - The annual recurring revenue (ARR) from cloud subscription services is approximately RMB 3.15 billion, reflecting a growth of 24.2% year-on-year [3]. - The company is focusing on large enterprise clients, which have shown significant growth, and is accelerating its international expansion [3]. - Cost reduction and efficiency improvements are evident, with a gross profit margin increase to 63.2% due to a higher proportion of subscription revenue [3]. Financial Summary - Total revenue (in RMB thousand) is projected to grow from 4,865,769 in 2022 to 8,469,372 by 2026, with a compound annual growth rate (CAGR) of approximately 13.79% [1]. - Net profit is expected to improve from a loss of 389,158 in 2022 to a profit of 470,236 by 2026, indicating a significant turnaround [1]. - The diluted earnings per share (EPS) is forecasted to rise from -0.11 in 2022 to 0.13 in 2026, reflecting a strong recovery trajectory [1]. - The company has been actively repurchasing shares, with 47.3 million shares bought back for a total of HKD 400 million [3].
金蝶国际：公司营收和盈利受短期宏观影响，云订阅模式转型持续推进