SAP(US:SAP) Huachuang Securities·2025-04-24 08:15Investment Rating - The industry investment rating is "Recommended," indicating an expected increase in the industry index by more than 5% over the next 3-6 months compared to the benchmark index [16]. Core Insights - SAP reported a Q1 FY2025 revenue of €9.013 billion, a year-on-year increase of 12%, and a Non-IFRS net profit of €1.681 billion, up 78% year-on-year, exceeding Bloomberg consensus expectations [6]. - The backlog of orders increased by 28% year-on-year, reaching €18.202 billion, indicating strong demand for SAP's cloud services [6]. - SAP maintains a positive outlook for FY2025, projecting cloud and software service revenues between €33.1 billion and €33.6 billion, with expected growth rates of 11% to 13% year-on-year [6]. - The cloud business generated €4.993 billion in revenue, a 27% increase year-on-year, driven by continuous demand for cloud services [6]. - The introduction of AI tools has improved efficiency, with developers' productivity increasing by 30%, which is expected to accelerate innovation [6]. Summary by Sections Industry Basic Data - The computer industry consists of 336 listed companies with a total market capitalization of ¥42,000.86 billion and a circulating market capitalization of ¥35,778.06 billion [3]. Relative Index Performance - The absolute performance over the last 1 month, 6 months, and 12 months is -11.5%, 3.3%, and 36.0% respectively, while the relative performance is -8.1%, 7.7%, and 28.8% [4]. Company Performance - SAP's cloud business revenue for Q1 FY2025 was €4.993 billion, reflecting a 27% year-on-year growth, with cloud ERP suite revenue increasing by 34% to €4.251 billion [6]. - The company expects free cash flow of approximately €8 billion for FY2025, with an effective tax rate of around 32% [6].