Investment Rating - Outperform rating maintained [1] Core Views - Cloud subscription transformation is progressing steadily, with cloud service revenue reaching RMB 2.39 billion in H1 2024, up 17.2% YoY, accounting for 83.2% of total revenue [3] - Large enterprise business revenue and contract amounts continue to grow rapidly, with Kingdee Cloud·Cangqiong and Kingdee Cloud·Xinghan revenue reaching RMB 546 million in H1 2024, up 38.9% YoY [4] - The company upgraded its enterprise-level AI platform, launching the Cosmic AI management assistant, and deepened cooperation with major AI players like Baidu, Microsoft, AWS, and Tencent [4] Financial Performance - H1 2024 revenue reached RMB 2.87 billion, up 11.9% YoY, with net loss narrowing by 23.2% to RMB 218 million [3] - Cloud subscription annual recurring revenue (ARR) reached RMB 3.15 billion, up 24.2% YoY, with related contract liabilities up 28.2% [3] - Revenue from medium-sized enterprise business (Kingdee Cloud·Xingkong) reached RMB 1.054 billion, up 14.3% YoY, with 42,000 customers [4] - Small and micro enterprise business revenue reached RMB 588 million, up 17.3% YoY, with Kingdee Cloud·Xingchen revenue up 70.8% [4] Business Segments - Cloud service business revenue is expected to grow from RMB 4.505 billion in 2023 to RMB 7.848 billion in 2026, with a CAGR of 20.91% [7] - ERP and other business revenue is expected to decline slightly from RMB 1.174 billion in 2023 to RMB 1.089 billion in 2026 [7] - Total revenue is forecasted to grow from RMB 5.679 billion in 2023 to RMB 8.938 billion in 2026, with a CAGR of 17.58% [7] Valuation and Forecast - 2024-2026 revenue is projected at RMB 6.532 billion, RMB 7.602 billion, and RMB 8.938 billion, with YoY growth of 15.0%, 16.4%, and 17.6% respectively [4] - Net profit is expected to turn positive in 2025 at RMB 15 million, reaching RMB 168 million in 2026 [4] - The company is valued at 5-6x 2024 PS, with a fair value range of HKD 9.90-11.88 per share [4] Comparative Analysis - The company's 2024 PS ratio of 3x is lower than the industry average of 7x, indicating potential undervaluation [6] - Key competitors include Yonyou Network, Kingsoft Office, Glodon, and YiduTech, with average PS ratios of 7x for 2024 [6]
金蝶国际：公司半年报点评：大型企业业务表现亮眼，苍穹重构升级为企业级AI平台