Core Insights - Northstar Holdings reported a revenue increase of 18.2% year-on-year to 516 million yuan for 1HFY26, with adjusted net profit turning positive at 19.59 million yuan, aligning with market expectations [1][2] Performance Review - Revenue and adjusted net profit met market expectations, with revenue growth driven by strong performance in cloud HCM solutions, which saw a 22.2% increase to 414 million yuan, accounting for 80.3% of total revenue [1] - Adjusted gross margin reached 69.9%, up 4.2 percentage points year-on-year, primarily due to improved margins from subscription services [2] Development Trends - The company is advancing its AI product commercialization, with new AI Family products generating over 26 million yuan in new contracts, covering more than 800 enterprise clients [1] - Annual recurring revenue (ARR) grew by 22% to 956 million yuan, with core HCM solutions ARR increasing by 27%, now representing 58% of total ARR [1] Profitability Outlook - Management expects adjusted net profit margin to reach 5% in FY26 and nearly 10% in FY27, supported by margin improvements and effective cost control [2] - The company maintains its revenue forecasts for FY26 and FY27, while adjusting the forecast for adjusted net profit upwards due to better-than-expected margin improvements [2] Valuation and Market Position - The company is currently trading at 4.2 times FY26 sales, indicating a potential upside of 66% based on a target price of 11.5 HKD, which is derived from a 7.0x FY26 sales multiple [2]

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]