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].

Core Viewpoint - Kingdee International (0268.HK) reported a continued loss in the first half of 2025, with a loss of 97.738 million yuan, accumulating over 1.4 billion yuan in losses over the past five and a half years [1][2]. Financial Performance - In the first half of 2025, Kingdee International achieved revenue of 3.192 billion yuan, a year-on-year increase of 11.2%, while the loss attributable to equity holders narrowed by 55.1% compared to the previous year [2][3]. - Cumulative losses over five and a half years reached 1.477 billion yuan [2]. Cost Structure - Research and development expenses were controlled at 777 million yuan, down 3.8% year-on-year, while sales expenses rose to 1.264 billion yuan, an increase of 3.18%, marking a historical high for the period [3]. - Administrative expenses increased by 39% to 346 million yuan due to personnel restructuring and severance payments [3]. Strategic Focus - The company has accelerated its AI transformation, launching several AI-native products in the first half of 2025, including the Cloud AI Agent platform 2.0 and various intelligent assistants [3]. - AI contract amounts exceeded 150 million yuan, with expectations that AI revenue could account for 30% of total revenue by 2030 [3]. Business Segments - The cloud service business remains the largest revenue source, contributing over 80% of total revenue, with a revenue of 2.673 billion yuan in the first half of 2025, growing approximately 11.9% year-on-year [5]. - However, the growth rate of cloud service revenue has been declining, with previous growth rates of 35.5%, 21.5%, and 17.2% from 2022 to 2024 [5]. Market Performance - In the large enterprise market, Kingdee's cloud services performed well, generating approximately 845 million yuan, a year-on-year increase of 34.3% [6]. - The mid-sized market showed weaker performance, with customer growth stagnating and a decline in new contracts signed [6]. - The small enterprise segment also faced challenges, with renewal rates below industry standards despite customer growth [6]. International Expansion - Kingdee is actively expanding its overseas business, particularly in Southeast Asia and the Middle East, but revenue from international operations remains low at 41.61 million yuan, accounting for only 1.32% of total revenue [7]. - The company has faced challenges in penetrating the high-end enterprise market dominated by international giants like SAP and Oracle [7]. Shareholder Sentiment - Recent shareholder reductions indicate a lack of confidence in the company's ability to turn around its financial performance, with stock prices significantly down from historical highs [8].

Core Insights - The combination of AI and SaaS is becoming a key driver for the transformation of enterprise management models amid macroeconomic uncertainty and technological change [1] - Kingdee International reported resilient performance in the first half of 2025, with total revenue of 3.192 billion yuan, a year-on-year increase of 11.2%, and cloud subscription revenue growing by 22.1% to 1.684 billion yuan, surpassing 50% of total revenue for the first time [1][2] - The company disclosed that its AI contract signing amount has exceeded 150 million yuan and set a strategic goal for AI revenue to account for 30% of total revenue by 2030 [1][4] Financial Performance - Kingdee's cloud business has achieved a compound annual growth rate of 47.3% over the past decade, with cloud service revenue accounting for 83.7% of total revenue in the first half of 2025 [2] - The gross margin improved to 65.6%, with a 2.4 percentage point increase year-on-year, driven by the growth of high-margin cloud subscription revenue [2] - Operating cash flow showed significant improvement, narrowing to -18 million yuan from -166 million yuan in the same period last year, with management projecting positive cash flow exceeding 1 billion yuan for the full year 2025 [2] AI Commercialization - Kingdee's AI commercialization began to show results in the first half of 2025, with the launch of the Cangqiong AI Agent platform 2.0 and various native intelligent agents across different enterprise sizes [3][4] - The company reported a 34.3% year-on-year revenue growth in large enterprises, with cloud subscription revenue increasing by 41.1% and a net dollar retention rate (NDR) of 108% [3] - AI applications are being integrated into various business processes, enhancing productivity and decision-making efficiency across sectors [9] Competitive Advantages - Kingdee's core competitive advantages include deep industry know-how, data security, and reliable hosting, which are difficult for generic AI models to replicate [6][7] - The company has built a unique growth flywheel that leverages SaaS applications to accumulate vast amounts of business data, which in turn empowers AI training and enhances SaaS product value [7] International Expansion - Kingdee is pursuing a pragmatic internationalization strategy, initially following Chinese enterprises abroad and establishing localized teams in Southeast Asia and the Middle East [9] - The company has set up overseas offices in countries like Malaysia, Singapore, and Qatar, adapting products to 14 languages and various national regulations [9] - Collaborations with international financial institutions in smart treasury services and cross-border payments are expected to enhance competitive differentiation in overseas markets [9] Future Outlook - Kingdee aims for AI revenue to reach 30% of total revenue by 2030, with cloud subscription and AI revenue combined to account for 80%-90% of total revenue, and per capita revenue exceeding 1 million yuan [10][11]

Investment Rating - The investment rating for the company is "Buy" (maintained) [4][11]. Core Insights - The company has shown good growth in its cloud business and accelerated the implementation of AI applications. The revenue for the first half of the year reached 3.192 billion yuan, a year-on-year increase of 11.2%, with a significant reduction in net loss from 218 million yuan to 98 million yuan [5][6]. - The company continues to push its "subscription-first" strategy, achieving a cloud subscription revenue of 1.684 billion yuan, which is a 22.1% increase year-on-year. The annual recurring revenue (ARR) for cloud subscriptions reached 3.73 billion yuan, up 18.5% [6][5]. - The company is also advancing its "AI-first" strategy, launching several AI products and achieving over 150 million yuan in AI contract amounts during the reporting period [6][5]. Financial Forecast and Valuation - The company's revenue projections for 2025, 2026, and 2027 are adjusted to 7.078 billion yuan, 8.004 billion yuan, and 9.001 billion yuan respectively, with net profits expected to be 1.18 billion yuan, 3.36 billion yuan, and 6.35 billion yuan [6][4]. - The price-to-sales (P/S) ratios for the years 2025, 2026, and 2027 are projected to be 7.3, 6.4, and 5.7 respectively [6][4]. - The company is expected to achieve a gross margin of 66.0% in 2025, increasing to 68.0% by 2027 [9][8]. Operational Performance - The company has improved its operational metrics, with a gross margin of 65.63% in the latest reporting period, up from 63.25% year-on-year [6][5]. - The net profit margin is projected to turn positive by 2025, with a forecast of 1.7% [9][8]. - The return on equity (ROE) is expected to improve from -1.7% in 2024 to 7.2% by 2027 [9][8].

每经记者｜陈鹏丽 每经编辑｜魏官红 8月11日晚，金蝶国际（HK00268，股价16港元，市值567.9亿港元，以下亦称金蝶集团）对外发布了2025年半年度业绩。今年上半年，金蝶集团录得收入约 31.92亿元（人民币，下同），同比增长约11.2%。同时，公司毛利率同比改善2.4个百分点至约65.6%；公司权益持有人当期应占亏损约为0.98亿元，同比持 续缩窄。 8月12日上午，在2025年金蝶国际中期业绩发布会上，金蝶集团执行董事、首席财务官林波称："我们相信，今年一定是实现盈利的一年。"据公司估计，今 年集团的经营性现金流会在10亿元以上。林波还提到，2025年上半年，集团人均创收同比快速提升了19.4%，这是集团进行了人员结构优化的结果。 在随后的现场提问环节，林波进一步告诉《每日经济新闻》记者，长期来看，公司希望保持现有员工规模甚至略有减少，未来公司的人员结构还会进一步优 化，加大AI（人工智能）方面人才的引进。 这场业绩会上，金蝶集团董事会主席兼首席执行官徐少春表示，他深信"AI（人工智能）+SaaS（软件即服务）"的"黄金十年"正在进行当中。到2030年，金 蝶国际的AI收入占比会达到或超过30%。 ...

Core Viewpoint - Kingdee International is optimistic about achieving profitability in 2025, driven by growth in cloud subscription services and AI efficiency improvements [1][2]. Financial Performance - In the first half of 2025, Kingdee recorded revenue of approximately 3.192 billion RMB, a year-on-year increase of about 11.2% [1]. - The company's gross margin improved by 2.4 percentage points to approximately 65.6% [1]. - The loss attributable to equity holders narrowed to approximately 98 million RMB [1]. - Cloud subscription revenue reached 1.684 billion RMB, up 22.1% year-on-year, while "products, implementation, and others" revenue was 1.508 billion RMB, a slight increase of 1.2% [2]. Operational Efficiency - The average revenue per employee increased by 19.4% year-on-year due to personnel structure optimization [1]. - Sales and marketing expense ratio and R&D expense ratio decreased, while administrative expense ratio increased by 2.1 percentage points to 10.8% due to personnel optimization and severance payments [3]. AI and SaaS Strategy - Kingdee's CEO believes that the "golden decade" of "AI + SaaS" is underway, with expectations that AI revenue will account for 30% or more by 2030 [1][5]. - The company has launched several AI-native products and aims to enhance its AI capabilities to drive SaaS applications in enterprises [5][6]. - The AI contract signing amount has exceeded 150 million RMB, indicating strong market interest [6]. Market Segmentation - Kingdee's cloud subscription business saw revenue growth across large, medium, and small enterprises, with large enterprises contributing approximately 276 million RMB, a year-on-year increase of about 41.1% [7]. - The company aims to increase the proportion of cloud subscription revenue, currently at 52.8%, to 80%-90% in the future, indicating significant growth potential in the large enterprise market [7].

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 ...

Investment Rating - The industry rating is "Outperform the Market" with expectations for the overall industry performance to surpass the market in the next six months [14]. Core Insights - The acceleration of large model iterations both domestically and internationally is expected to foster a prosperous AI application ecosystem, particularly in multi-modal applications and AI Agents [2][3]. - The report highlights that 2025 is anticipated to be a pivotal year for the commercialization of AI multi-modal applications and AI Agents, with significant advancements expected in these areas [3]. Summary by Sections Domestic Developments - On July 28, Zhiyu released its flagship model GLM-4.5, achieving state-of-the-art performance in 12 benchmark tests across reasoning, programming, and agent capabilities [1]. - Alibaba launched the video generation model Tongyi Wanshang Wan2.2, which is the first in the industry to utilize a Mixture of Experts (MoE) architecture, featuring a total parameter count of 27 billion and an activation parameter count of 14 billion, resulting in approximately 50% savings in computational resources [1]. International Developments - Google DeepMind introduced Genie 3, a third-generation universal world model capable of real-time interaction and enhanced memory, which is expected to accelerate the transition of models to application layers [2]. - Anthropic released Claude Opus 4.1, achieving a score of 74.5% on the SWE-Bench Verified, indicating significant improvements in programming capabilities and efficiency in handling complex multi-step problems [2]. - OpenAI reintroduced two open-weight language models, GPT-OSS-120B and GPT-OSS-20B, supporting various reasoning intensities and designed for personal devices [2]. Application Focus - The report suggests focusing on the commercialization progress of AI multi-modal applications and AI Agents, with notable advancements in areas such as image and video generation, where companies like Meitu and Kuaishou are leading [3][6]. - The AI Agent sector is also highlighted, with companies like Kingdee International and Maifushi making strides in developing enterprise-level AI solutions [6]. Related Companies - Key companies to watch include Alibaba, Baidu, Tencent, Meitu, Kuaishou, Kingdee International, and Maifushi, among others, which are positioned to benefit from advancements in AI technologies [6].

Core Viewpoint - The company is adjusting its customer success service packages and pricing, which is expected to positively impact its gross profit by differentiating between standard and advanced services, allowing for increased contract revenue from large enterprise clients while reducing implementation costs for standard package clients [2]. Group 1: Service Adjustments - Starting from July 1, 2025, the company will no longer include ticket services in the standard success service package, requiring clients to purchase the advanced service for an additional cost of 15% of the software subscription amount [2]. - This adjustment aims to enhance the distinction between standard and customized services, potentially increasing revenue during contract renewals with large enterprise clients [2]. Group 2: Product Launches - The company has launched the upgraded Cangqiong Agent Platform 2.0, which integrates deeply with core business systems like ERP through the MCP standard protocol [3]. - Five intelligent agents have been developed on this platform, including: 1. JinYao Financial Report Agent for deep financial report analysis and synthesis [3]. 2. ChatBI for data exploration through natural language queries [3]. 3. Recruitment Agent for automating the hiring process, improving matching accuracy from 40% to 90% [3]. 4. Travel Agent for automating travel arrangements based on user preferences [3]. 5. Enterprise Knowledge Agent for intelligent decision-making based on company-specific knowledge [3]. - As of May 2025, the platform has signed contracts with 20 clients, including Hisense Group and Wens Foodstuff Group [3]. Group 3: Revenue Performance - In 2024, the company generated revenue of 1.304 billion RMB from large enterprise clients, a year-on-year increase of 32.9%, with contract signing amounts reaching approximately 2.1 billion RMB, up 52% [4]. - Revenue from medium-sized clients was 2.153 billion RMB, reflecting a growth of 10.3%, while small and micro business revenue reached 1.229 billion RMB, growing by 13.8% [4]. - The company anticipates steady growth in large enterprise business for 2025, although medium and small business segments may face challenges due to macroeconomic conditions [4].