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]

Core Viewpoint - The report from CICC expresses optimism about the profitability of Beisen Holdings (09669) due to its SaaS model, maintaining an "outperform" rating and a target price of HKD 11.5, with revenue increasing to RMB 516 million year-on-year, driven by strong performance in core cloud HCM solutions and rapid commercialization of AI products, with new contract amounts exceeding RMB 26 million [1] Performance Summary - Beisen Holdings reported a revenue increase of 18.2% year-on-year to RMB 516 million for 1HFY26, with adjusted net profit turning positive at RMB 19.59 million, compared to a loss of RMB 34.16 million in the same period last year, aligning with the company's previous earnings guidance [1] Development Trends - Product revenue remains robust, with AI product commercialization continuing to advance. In 1HFY26, revenue from cloud HCM solutions grew by 22.2% year-on-year to RMB 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 RMB 956 million, with average revenue per user (ARPU) rising by 6.5%. The subscription revenue retention rate (NDR) reached 105%, and customer retention rate stood at 83%. The core product, Core HCM solution, saw ARR growth of 27%, increasing its share of total ARR to 58%. In the AI segment, new contract amounts for AI Family products exceeded RMB 26 million, covering over 800 enterprise clients. The company launched the AI Family 2.0 product, featuring 10 AI agents across more than 50 HR business scenarios. Management indicated that new contract amounts for AI-related products are expected to exceed RMB 60 million in FY26 and contribute 5%-10% of total revenue in FY27 [2] Profitability Improvement - The adjusted gross margin for 1HFY26 reached 69.9%, an increase of 4.2 percentage points year-on-year, primarily due to improved gross margins from product subscription business driven by economies of scale. The adjusted net profit margin reached 3.8%, up 11.6 percentage points year-on-year, attributed to margin improvement and effective cost control. However, due to seasonal factors, the company's operating cash flow showed a net outflow of RMB 86.15 million. Looking ahead, management expects the adjusted net profit margin to reach 5% in FY26 and nearly 10% in FY27 [3]

Core Insights - Beisen Holdings (09669) reported revenue from customer contracts of 516 million RMB for the six months ending September 30, 2025, representing a year-on-year increase of 18.2% [1] - The company recorded a loss attributable to shareholders of 18.408 million RMB, which narrowed by 81.4% year-on-year [1] - Basic loss per share was 0.03 RMB [1] - The increase in total revenue was primarily driven by the growth in subscription revenue from cloud-based HCM solutions [1]

Core Viewpoint - Beisen Holdings (09669) reported a revenue of 516 million RMB for the six months ending September 30, 2025, representing an 18.2% year-on-year growth, primarily driven by increased subscription revenue from cloud-based HCM solutions [1] Financial Performance - Revenue from customer contracts reached 516 million RMB, marking an 18.2% increase compared to the previous year [1] - The loss attributable to shareholders narrowed to 18.408 million RMB, a reduction of 81.4% year-on-year [1] - Basic loss per share was reported at 0.03 RMB [1]

Core Insights - The company reported a total revenue of RMB 516 million for the six months ending September 30, 2025, representing an 18.2% increase compared to the same period last year [1] - Revenue from cloud HCM solutions reached RMB 414 million, marking a 22.2% year-over-year growth, and accounted for over 80% of total revenue, an increase of 2.7 percentage points from the previous year [1] - The adjusted net profit margin improved by 11.6 percentage points to 3.8% [1] - Adjusted EBITDA reached RMB 39.3 million, indicating strong operational performance [1] - Subscription revenue retention rate remained at a healthy 105% [1] - Core HCM integrated annual recurring revenue (ARR) maintained a growth rate of 27% [1]

Core Viewpoint - Beisen Holdings, as China's first HR SaaS public company, has shown continuous revenue growth since its listing in April 2023, surpassing 900 million RMB in FY2025, but faces challenges including ongoing losses, limited AI business contributions, and uncertain merger synergies [2][6][20]. Financial Performance - In FY2025, Beisen Holdings reported revenue of 945.08 million RMB, a year-on-year increase of 10.6%, with annual recurring revenue (ARR) exceeding 908 million RMB, growing over 20% [2][4]. - The company's net loss narrowed significantly from 3.21 billion RMB in FY2024 to 147 million RMB in FY2025, a reduction of 95.4% [6][7]. - Adjusted net loss decreased from 105 million RMB to 29 million RMB, a reduction of approximately 72% [6][7]. - Gross margin improved from 60.2% in FY2024 to 64.9% in FY2025 [2][4]. Business Segments - Revenue from cloud HCM solutions grew from 632 million RMB in FY2024 to 722 million RMB in FY2025, representing a 14.2% increase and accounting for 76.4% of total revenue [4][5]. - Subscription revenue retention rate remained stable at 106% [5]. Market Concerns - Despite the positive financial results, the stock price fell over 18% following the earnings report, indicating market skepticism about the company's future [5][9]. - The AI-related business generated only 6 million RMB in ARR, constituting 0.66% of total ARR, highlighting the need for further development in this area [10][12]. AI Strategy and Competition - Beisen has launched several AI products aimed at recruitment and training, but faces competition from platforms offering similar functionalities for free [10][14]. - The company aims to prioritize independent revenue-generating AI applications rather than supplementary features [14][16]. Acquisition of Cool Academy - The acquisition of Cool Academy for 180 million RMB aims to enhance Beisen's market coverage and integrate its technology with Cool Academy's customer base [16][20]. - However, there are concerns regarding the integration of different organizational cultures and potential conflicts between customer bases [19][20]. - The financial impact of the acquisition remains uncertain, as Cool Academy reported significant losses in previous years [21][23]. Future Outlook - Beisen Holdings must focus on improving core business profitability, accelerating AI innovation, and enhancing organizational management to achieve sustainable growth [20].

Core Insights - The company reported FY2025 results that met market expectations, with revenue increasing by 10.6% to 945 million yuan and adjusted net loss narrowing from 105 million yuan to 29.1 million yuan, falling within the previously announced profit warning range [1][2] - The company announced the acquisition of 100% equity in KuXueYuan on January 15, 2025, to strengthen its position in the eLearning market [1] Revenue and Growth Trends - Product revenue remained robust, with cloud HCM solutions revenue growing by 14.2% year-on-year, accounting for 76.4% of total revenue, an increase of 2.4 percentage points [1] - Annual recurring revenue (ARR) increased by 20.1% to 908 million yuan, with average revenue per user (ARPU) rising by 8% [1] - Subscription revenue retention rate (NDR) reached 106%, and customer retention rate stood at 81% [1] - Core HCM solutions ARR grew by 29%, contributing 59% to total ARR [1] - AI-related products ARR exceeded 6 million yuan by the end of March 2025, covering over 300 enterprise clients, with 10 AI Agent products launched and over 200 AI features available [1] Profitability and Cash Flow - Adjusted gross margin reached 66.2%, an increase of 2.2 percentage points, driven by improved gross margins in subscription services [2] - Adjusted net loss margin narrowed to 3.1%, a reduction of 9.2 percentage points, due to margin improvement and effective cost control [2] - The company achieved positive operating cash flow with a net inflow of 76.93 million yuan [2] Future Outlook and Valuation - For FY2026, the company is expected to turn a profit at the adjusted net profit level, supported by ongoing business scale effects [2] - Revenue forecast for FY2026 remains unchanged, while adjusted net profit forecast has been revised from a loss of 18.11 million yuan to a profit of 22.51 million yuan [2] - FY2027 revenue forecast is set at 1.269 billion yuan, with an adjusted net profit forecast of 100 million yuan [2] - The target price has been raised by 130% to 11.5 HKD, reflecting an upward adjustment in valuation multiples from 3.4 times to 7.0 times based on FY26 [2]

Core Viewpoint - The article provides a financial forecast for Beisen Holdings, predicting a total revenue of 940 million RMB for FY25, representing a year-on-year growth of approximately 10% [3]. Revenue Breakdown - The expected revenue from cloud HCM solutions is 730 million RMB, with a year-on-year increase of 16%, while professional services revenue is projected to be 210 million RMB, showing a decline of 6% [3]. - For FY25 H1, the revenue from cloud HCM solutions reached 340 million RMB, reflecting a year-on-year growth of 14.3% [4]. Core HCM and Learning Cloud Growth - The Core HCM integrated ARR grew by 28% year-on-year, accounting for 55% of total revenue, with nearly 2,100 cumulative clients [4]. - The Learning Cloud ARR saw a significant increase of 60% year-on-year, adding 160 new clients [4]. - In January 2025, Beisen announced the acquisition of HR SaaS platform KuXueYuan for 180 million RMB, which has 4,000 paying clients, enhancing Beisen's market position [4]. AI Strategy - Since 2024, Beisen has initiated an AI strategy, launching seven AI assistants, collectively known as the Beisen AI Family, which includes features for recruitment and employee assistance [5]. - The AI Interviewer, based on various large language models, has shown rapid commercialization, with over 120 clients by January 2025 and expectations to reach over 200 clients by March 2025, potentially generating an ARR of 7 to 8 million RMB [5]. - The AI Employee Assistant provides 24/7 support, enhancing employee self-service experience [5].