Investment Rating - The report assigns a "Buy" rating for the company, Beisen Holdings (9669.HK) [2] Core Insights - Beisen Holdings is the largest cloud-based Human Capital Management (HCM) solution provider in China, maintaining a leading market share of 15.3% as of the first half of 2023 [2][12][14] - The digital transformation of HCM in China is expected to grow significantly, with the market projected to reach 59 billion yuan by 2027, indicating substantial growth potential compared to the U.S. market [2][21][30] - The company has a strong focus on cloud-based solutions, which are increasingly replacing on-premise deployments, with a compound annual growth rate of 27.7% from 2017 to 2021 [2][30] Summary by Sections Company Overview - Beisen Holdings was established in 2002 and transitioned from traditional software to HR SaaS in 2009, covering the entire human resource lifecycle from recruitment to exit [10][12] - The company has a stable shareholding structure and experienced management team, with founders having extensive experience in the HCM industry [15][16] Market Potential - The domestic HCM market is in a rapid development phase, with increasing demand for digital solutions driven by economic growth and industry transformation [21][25] - The market for digital HCM solutions is currently only 2.9% of the total HCM market, indicating significant room for growth [21][25] Business Performance - Revenue from the company's core HCM solutions has shown steady growth, increasing from 382 million yuan in FY2019 to 751 million yuan in FY2023, with a compound annual growth rate of over 10% [17][19] - The subscription revenue from cloud-based HCM solutions has risen from 209 million yuan to 537 million yuan during the same period, with a revenue share increase from 54.68% to 71.55% [17][19] Competitive Advantage - Beisen Holdings is the only provider in the industry with a fully integrated cloud application platform and a unified open PaaS platform, enhancing its competitive edge [2][14] - The company has a diverse product offering that includes six core modules, allowing for cross-selling opportunities and improved sales efficiency [2][17] Financial Projections - The company is expected to achieve revenues of 859 million yuan, 1.048 billion yuan, and 1.230 billion yuan for FY2024, FY2025, and FY2026 respectively, with year-on-year growth rates of 14%, 22%, and 17% [2][19]
首次覆盖报告：云端HCM解决方案龙头，汇聚核心人力管理