MING YUAN CLOUD (00909) surged over 4% in afternoon trading. As of press time, the stock was up 4.11% to HK$3.8, with trading volume reaching HK$86.58 million.

CITIC Securities released a research report stating that MING YUAN CLOUD's revenue continues to face pressure due to the persistent downturn in the downstream real estate and construction industries. However, the company has increased investment and promotion in cloud AI-related products. In H1 2025, the terminal contract value for cloud AI products reached approximately RMB 32 million, exceeding the full-year contract value for 2024. Driven by accelerated AI product promotion, the average customer unit price for cloud sales offices in H1 2025 was RMB 37,700 per unit, representing a 2.4% increase compared to the same period last year. This improvement was primarily due to customers increasing their procurement of cloud AI products. Additionally, the company's lean operations continue to advance, with cost reduction and efficiency improvement driving profits into positive territory.

Goldman Sachs noted that MING YUAN CLOUD's first-half performance fell short of expectations, but the company recorded its first adjusted net profit since 2022. During the period, revenue declined 16% year-on-year, underperforming both the bank's and market forecasts of 10%. Core cloud services revenue dropped 14%, with most cloud business revenue segments underperforming expectations. However, due to the company's discontinuation of loss-making product lines and effective cost control measures, gross margin exceeded the bank's expectations. Adjusted operating expenses decreased 20% year-on-year, driving adjusted net profit to RMB 33 million.