Summary of Ming Yuan Cloud (0909.HK) Conference Call Company Overview - **Company**: Ming Yuan Cloud (0909.HK) - **Industry**: Real Estate Software and SaaS Key Points AI Software Products - The company has launched **8 AI products** aimed at driving Average Revenue Per User (ARPU) growth for its CRM Cloud, generating contract values of **Rmb28 million** in 2024 and **Rmb32 million** in 1H25. The target is to reach **Rmb50-60 million** in 2025 and **Rmb100 million/200 million** in 2026/27 for AI products [3][11] - **AI Employee Badge**: Launched in early 2022, it generated **Rmb10 million** in contracted amount in 1H25, helping improve customer conversion rates by recording sales personnel's conversations [6] - **AI Video Generation**: A fast-growing tool using Alibaba Qwen/Bytedance Doubao model, currently in discussions for collaboration with Kuaishou Kling [6][7] - **AI Sales Assistant**: Engages with potential leads post live-streaming, processing over **2 million** conversations in 1H25 [8] - **AI Live-Streaming Robots**: Conducts autonomous live-streaming for property tours, aiming for over **70%** market share [8] - **AI Ad Intelligent Placement**: Automates ad placement strategies for better results [8] Overseas Expansion - Achieved a contracted amount of **Rmb15 million** in 1H25 from markets outside mainland China, including Southeast Asia, Japan, and Hong Kong, with a target of **Rmb50 million** for 2025 [8] - Established localized teams in these regions to foster partnerships with local software teams and channel partners [8] - **Linkforce Platform**: A construction site management solution in Hong Kong, showing a **10%** increase in worker attendance and **20%** improvement in safety alert processing efficiency [9] - **ASIOT Acquisition**: Completed acquisition of Japanese SaaS+IoT company ASIOT, expected to consolidate in 2H25, with a **99%** retention rate for smart utility meters [9] Financial Outlook - The company expects a **10-15%** decline in revenue for 2025, with a narrowing decline projected for 2026 [14] - Operating Profit Margin (OPM) is expected to turn positive in 2026, with adjusted Net Profit Margin (NPM) projected at **5%-10%** in 2025 and **10%** in 2026 due to reduced R&D and sales expenses [14] - The current valuation is considered fair, supported by a strong net cash position and operational expense reductions leading to a positive net profit from 1H25 [11] Investment Thesis - The company is viewed as being in the early stages of business transition amid a challenging real estate market in China. The **12-month target price** is set at **HK$2.55**, with a **Neutral** rating [2][12] Risks - Upside risks include a faster-than-expected recovery in the real estate sector and better-than-expected digitization demand [12] - Downside risks involve execution challenges in cost reduction and weaker sales cycles from state-owned enterprises [12] Additional Information - The company is currently trading at **HK$3.47**, indicating a potential downside of **26.5%** to the target price [13]