Investment Rating - Maintain "Outperform" rating with a target price of 19.41 HKD for 2025, reflecting a dynamic PS of 9x [4][10]. Core Insights - The company is experiencing robust revenue growth, with a projected revenue of 6.99 billion RMB for 2025, and a net profit attributable to shareholders expected to reach 0.09 billion RMB [4][10]. - The cloud transformation is entering a harvest phase, evidenced by a 11.2% year-on-year revenue increase to 3.19 billion RMB in the first half of 2025, and a significant narrowing of net profit loss by 55.1% [11][12]. - AI integration into SaaS products is progressing well, with AI contract values exceeding 0.15 billion RMB, indicating strong demand for AI applications in enterprise management [13]. Financial Summary - Total revenue projections for 2023 to 2027 are as follows: 5.68 billion RMB in 2023, 6.26 billion RMB in 2024, 6.99 billion RMB in 2025, 7.93 billion RMB in 2026, and 9.15 billion RMB in 2027, reflecting a compound annual growth rate (CAGR) of approximately 15.4% from 2023 to 2027 [3][4]. - Gross profit is expected to grow from 3.64 billion RMB in 2023 to 6.41 billion RMB in 2027, with a gross margin improvement from 65.07% in 2024 to 70% in 2027 [8]. - The company anticipates a return to profitability with net profit projections of 0.09 billion RMB in 2025, 0.30 billion RMB in 2026, and 0.56 billion RMB in 2027, marking a significant turnaround from a net loss of 0.21 billion RMB in 2023 [3][4]. Cloud Business Performance - Cloud service revenue reached 2.67 billion RMB in the first half of 2025, up 11.9% year-on-year, with cloud subscription revenue contributing significantly to total revenue [11][12]. - The annual recurring revenue (ARR) from cloud subscriptions is projected to be 3.73 billion RMB, reflecting an 18.5% year-on-year growth [11][12]. - The company has achieved a 24.7% increase in cloud subscription contractual liabilities, indicating strong future revenue visibility [11][12]. AI Business Development - The company has successfully integrated AI into its SaaS offerings, with AI contract values surpassing 0.15 billion RMB in the first half of 2025 [13]. - New AI products launched include Cangqiong AI Agent 2.0 and various intelligent assistants, which have attracted key clients such as Hisense and Tongwei [13].

Investment Rating - The report maintains a "Buy" rating for Kingdee International (0268.HK) [4] Core Insights - The company achieved total revenue of 3.19 billion RMB in 25H1, a year-on-year increase of 11.2%, with cloud service revenue growing by 11.9% to 2.67 billion RMB [1] - The gross profit reached 2.095 billion RMB, reflecting a 15.4% year-on-year growth, resulting in a gross margin of 65.6% [1] - The company reported a net loss attributable to shareholders of approximately 97.74 million RMB, which was higher than the Bloomberg consensus estimate of a loss of 72.53 million RMB [1] Revenue Breakdown - The company restructured its revenue segments to focus on cloud subscription revenue, which accounted for 52.8% of total revenue in 25H1, up from 48.1% in 24H1 [2] - Cloud subscription revenue reached 1.684 billion RMB, a 22.1% year-on-year increase, with an annual recurring revenue (ARR) growth of 18.5% to 3.73 billion RMB [2] - The company signed 304 new clients, including major enterprises like Geely Holding and Mengniu Group, contributing to a net dollar retention (NDR) of 108% for its Cangqiong & Xinghan business unit [2] AI Commercialization Progress - The company reported AI contract amounts exceeding 150 million RMB in 1H25, with the launch of several AI-native products [3] - Active users of the AI assistant for small and micro enterprises reached 170,000, significantly improving accounting and invoicing efficiencies [3] Profit Forecast and Valuation - The revenue forecast for 25-27 has been slightly revised down to 6.9 billion, 7.7 billion, and 8.5 billion RMB respectively, reflecting a minor adjustment due to macroeconomic impacts [4] - The net profit forecast for 25-27 has been upgraded to 160 million, 480 million, and 880 million RMB respectively, indicating a positive outlook for profitability [4] - The report emphasizes that Kingdee, as a leading domestic ERP provider, is expected to enhance its product capabilities with AI integration [4]

金蝶围绕小微企业的采集、记帐、报税、合规、分析等财税场景，实现财税全流程智能化支持，AI助 手的活跃用户数已达到17万家。金蝶云·星辰推出AI+财税应用，已助力数千家小微企业整体记帐效率提 升约80%、开票效率提升约40%、报税效率提升约60%。金蝶信科持续打造企业信用AI能力，成功嵌入 多个金融科技场景，凭借独特的"数据+场景"解决方案，成功签约中国建设银行、交通银行等头部金融 机构;凭借落地应用的"智能金融风控大模型"，荣膺数字中国创新大赛一等奖。同时，金蝶加强与火山 引擎、阿里云、华为云等战略伙伴在AI领域的合作，提升研发效率及大模型推理性能，共创应用场 景。 金蝶积极推动全球化战略布局，大力拓展东南亚、中东等海外市场。期内，金蝶云・星空签约晶晨半导 体、绿联科技、SKYWIN Energy、PT WALSIN EVERISING等259家中企出海和海外本土企业，涵盖现 代服务、装备制造、电子高科技等多个行业。其中，金蝶为新加坡本地企业SKYWIN提供了大宗贸易行 业的数字化底座，助力其实现了期现货交易的全链路协同及智能监控预警，以及全球资金帐户集中化管 理。 报告期内，金蝶持续推进"订阅优先"战略，立 ...