Core Viewpoint - Han's Information achieved significant performance in the first half of 2025, with core operating indicators meeting expectations, including revenue and net profit, and operating cash flow turning positive for the first time in a single quarter [2][4]. Group 1: Financial Performance - In the first half of 2025, Han's Information reported a revenue of 1.1 billion yuan from AI business, with a notable increase in gross margin from proprietary products, which now account for 57% of total revenue [2][7]. - The company experienced a nearly 10% increase in sales expenses due to marketing and strategic investments, while management expenses rose significantly due to a 54 million yuan stock incentive provision [2][4]. - The traditional ERP business saw a revenue decline of approximately 5%, while the ITO business remained stable [2]. Group 2: AI Business Growth - The AI business is expected to sustain its growth momentum, driven by strong market demand and a shift in project promotion to a top-down approach led by core management [3][5]. - AI revenue structure indicates that Agent revenue constitutes a significant portion, approximately 80 million yuan, while AI middle platform revenue is around 30 million yuan [7]. - The company is focusing on multi-domain breakthroughs in AI, including marketing, supply chain, finance, and power sectors, with plans to enhance internal operations and market expansion [5][6]. Group 3: Strategic Initiatives - Han's Information is strategically investing in product and technology development in alignment with favorable national and local AI policies, aiming to create benchmark cases and optimize service processes [6]. - The company is building vertical models and combining tools to enhance customer value, responding to increasing market demands for model accuracy and data security [9]. - The enterprise-level PaaS platform (HZERO) has gained recognition from over 400 leading clients, with potential to expand to over 1,000 clients in the future [7].

Core Viewpoint - The report from BOC International maintains the earnings per share forecast for China Software International (00354) for this year but raises the forecasts for 2026 and 2027 by 5% and 6% respectively, reflecting accelerated AI revenue growth and the nationwide penetration of the HarmonyOS IoT [1] Group 1: Earnings Forecast and Valuation - The target price for China Software International has been raised from HKD 5.6 to HKD 7.6 based on a 20x price-to-earnings ratio for 2026 [1] - The company’s performance in the first half of this year was strong, with revenue and gross margin meeting expectations, while operating profit margin and net profit exceeded expectations year-on-year [1] Group 2: Management Outlook - Management is optimistic about revenue growth from full-scenario AI business in the next two years, driven by open-source HarmonyOS IoT, AI agents, and ERP business [1] - It is expected that by 2026, the revenue contribution from related businesses will reach approximately 20% [1] - Management anticipates a continued recovery in demand for its cornerstone business (IT outsourcing) in the second half of the year [1]

Core Viewpoint - China Software International (00354) maintains its earnings forecast for this year but raises the earnings per share (EPS) estimates for 2026 and 2027 by 5% and 6% respectively, reflecting accelerated AI revenue growth and increased penetration of the HarmonyOS IoT nationwide [1] Group 1: Earnings Forecast and Valuation - The target price for China Software International has been raised from HKD 5.6 to HKD 7.6 based on a 20x price-to-earnings ratio for 2026 [1] - The company reported strong performance in the first half of the year, with revenue and gross margin meeting expectations, while operating profit margin and net profit exceeded expectations with year-on-year increases [1] Group 2: Management Outlook - Management is optimistic about revenue growth from full-scenario AI business in the next two years, driven by open-source HarmonyOS IoT, AI agents, and ERP business [1] - It is anticipated that by 2026, the revenue contribution from related businesses will reach approximately 20% [1] - The management also expects a continued recovery in demand for its core IT outsourcing business in the second half of the year [1]