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中国软件 -25 年业绩回顾 - 聚焦人工智能势头及与软件的融合,生产效率提升开始显现-China Software_ 2Q25 result review; AI monetization and integration with software as focus, enhanced productivity starts to reflect on
2025-09-01 03:21

Summary of China Software 2Q25 Conference Call Industry Overview - The conference call focused on the China Software industry, particularly the performance of various software companies in the second quarter of 2025 (2Q25) and the first half of 2025 (1H25) - Average revenue growth for the covered companies was 9% YoY in 1H25, with an average net margin of -3% due to weak seasonality in the first half [1][2] Key Company Performances - Kingsoft Office, Thundersoft, and Sensetime reported revenues in 2Q25 that exceeded expectations due to increased AI spending - Glodon and Sangfor showed better-than-expected net income in 2Q25, attributed to improved employee productivity [1] - Yonyou reported a revenue growth of 7% YoY in 2Q25, recovering from a -21% YoY decline in 1Q25, supported by small and medium business (SMB) growth [9] - Thundersoft experienced a 50% YoY revenue increase, driven by strong growth in its AIoT business [26] - Glodon faced a -5% YoY revenue decline, but net margin improved to 13% due to product mix upgrades and cost management [17] Core Insights and Trends - Companies are focusing on: 1. Monetization of AI tools to provide value-added features [2] 2. Diversification into overseas markets or new categories to counteract slower IT spending in certain segments [2] 3. Integration of AI with core software products to capture a larger share of clients' budgets [2] - The average P/E ratio for China software companies increased to 55x-60x, indicating early signs of AI monetization, while the average EV/Sales ratio rose to 8x-9x [2] Company Ratings and Recommendations - Buy ratings maintained for Empyrean and Kingdee - Neutral rating for Yonyou - Sell ratings for ZWSOFT, Thundersoft, Glodon, and Sangfor [3] Earnings Revisions - Yonyou: Revised down 2025 net loss to Rmb594m from Rmb517m due to lower revenues during transformation [12] - Glodon: Revenue estimates revised down by 1%-3% for 2025-28E, but earnings revised up by 18%/12%/2%/1% due to improved productivity [20] - Thundersoft: Revenue estimates revised up by 8%/5%/4% for 2025-27E, reflecting higher revenues from the IoT business [30] - Sangfor: Revenue estimates revised down by 9%/2%/1% for 2025-27E due to lower security software revenues [46] Other Important Insights - ZWSOFT launched new products with enhanced 3D CAD features, which are expected to support long-term growth despite current muted growth in 3D CAD software [39] - Sangfor is expanding its cloud computing product offerings, which is expected to contribute to revenue growth [45] - The overall sentiment in the industry is cautiously optimistic, with expectations of improved productivity and revenue growth driven by AI integration and new product offerings [1][2][3]