Core Viewpoints - Beisen's business barriers are solid, and its integrated architecture drives product differentiation advantages [1] - The ROI of products like AI Interviewer can be clearly measured, with a clear path for implementation expected [1] - The company is projected to achieve revenue of RMB 11.4 billion, 13.3 billion, and 15.5 billion for FY2026-28, with year-on-year growth rates of 21%, 16%, and 17% respectively [1] Financial Performance - In FY1H26, Beisen's cloud business revenue reached RMB 5.16 billion, a year-on-year increase of 18.2% [1] - The subscription revenue from cloud HCM was RMB 4.14 billion, growing by 22.2% year-on-year, accounting for 80.3% of total revenue [1] - The overall gross margin improved to 68.9%, up 4.4 percentage points year-on-year [1] AI Product Commercialization - Beisen's AI products have achieved faster commercialization compared to domestic and international peers, contributing over RMB 26 million in new contract value [2] - The AI Interviewer has penetrated approximately 410 clients, demonstrating successful upselling logic within existing customers [2] - AI products are expected to surpass RMB 60 million in contract value in FY26, becoming a second growth curve alongside Core HCM [2] Market Position and Trends - Beisen holds a 15% market share in China's HCM SaaS market, maintaining the leading position for nine consecutive years [3] - The acceptance of public cloud and AI deployment models has improved, benefiting Beisen's competitive environment in state-owned enterprises [3] - The company is expected to maintain a growth rate of 15-20% in the medium term due to the expanding market for domestic alternatives [3] Addressing Market Needs - Beisen's AI products address significant recruitment needs in the labor market, with a potential market size exceeding RMB 10 billion for interview screening alone [4] - The AI coaching product can tap into a market worth over RMB 2.3 billion by reducing traditional training costs [4] M&A and Integration Effects - The acquisition of Ku Academy has driven a 305% year-on-year increase in annual recurring revenue (ARR), approaching 4,500 clients [5] - The integration of SaaS products is expected to enhance profit margins through cost coordination effects [5] - The unified PaaS platform allows for optimization of overlapping roles post-acquisition, improving overall efficiency [5]

Group 1 - The core viewpoint of the report is that Haitong International initiates coverage of Beisen Holdings (09669) with an "Outperform" rating, projecting revenue growth and profitability improvements in the coming years [1] - The company is expected to achieve revenues of 1.135 billion, 1.335 billion, and 1.563 billion yuan for the fiscal years 2026-2028, representing year-on-year growth rates of 20.1%, 17.6%, and 17.1% respectively [1] - The projected net profit for the parent company is expected to be -61 million, 55 million, and 200 million yuan for the same fiscal years, with earnings per share (EPS) of -0.08, 0.08, and 0.27 yuan [1] Group 2 - Beisen adheres to an "integrated HCM SaaS" strategy, having served over 6,000 medium to large enterprises, and is the only Chinese provider with a unified open PaaS platform for cloud HCM solutions [2] - The company’s iTalentX platform covers the entire lifecycle of human resource management, from recruitment to resignation, which is expected to enhance its competitive advantage and accelerate AI transformation [2] - Beisen's AI initiatives have shown significant progress, with the launch of AI product development in early 2024 and successful commercialization by August of the same year, achieving an annual recurring revenue (ARR) of over 6 million yuan by the end of the 2025 fiscal year [2]