Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 2.65 HKD per share [5]. Core Insights - The company's SaaS business has stabilized sequentially, and the structure of advertising clients continues to optimize [1]. - The company reported a revenue of 775 million RMB for 1H25, a year-over-year decrease of 10.6%, primarily due to cost-cutting measures that reduced low-margin, low-quality small business operations [1]. - The adjusted net profit for 1H25 was 17 million RMB, marking the first profit since 2021, attributed to cost reduction and efficiency improvements [1]. Summary by Sections Subscription Revenue - Subscription solutions revenue for 1H25 was 438 million RMB, down 10.1% year-over-year, mainly due to the reduction of low-quality subscription businesses [2]. - The number of paying merchants decreased by 13.9% year-over-year to 59,100, while the average revenue per user (ARPU) increased by 4.5% to 7,402 RMB [2]. - The smart retail business generated 286 million RMB in revenue, accounting for 65.2% of subscription solutions revenue, despite a 6.1% year-over-year decline [2]. Advertising Revenue - Merchant solutions revenue for 1H25 was 338 million RMB, down 11.3% year-over-year, but adjusted revenue growth reached 45.3% after accounting for a reduction in the rebate ratio [3]. - The gross advertising revenue for merchants was approximately 8.623 billion RMB, reflecting a year-over-year growth of 3.4% [3]. - The gross margin for this business segment improved to 91.3% compared to 74.5% in 24H1, due to the reduction of low-margin businesses [3]. AI Integration - The company's AI product revenue reached approximately 34 million RMB in 1H25, with significant growth in user engagement for its AI solutions [4]. - The WAI SaaS product saw a 4.5-fold increase in usage for store operations, while WIME registered 110,000 users with a revenue growth of 172% [4]. - The company plans to continue expanding its AI applications and has developed 15 AI agents to enhance business operations [4]. Financial Forecast and Valuation - Revenue forecasts for 2025 and 2026 have been adjusted downwards to 1.58 billion RMB and 1.74 billion RMB, respectively, with a new forecast for 2027 set at 1.88 billion RMB [4]. - The report indicates a gradual stabilization of the SaaS business and an improvement in the merchant solutions segment due to strategic adjustments [4].
微盟集团（02013）：25H1业绩点评：SaaS业务环比企稳，广告客户结构持续优化