According to Zhitong Finance APP, Haitong International published a research report initiating coverage on BEISEN HOLDING (09669) with an "Outperform" rating. The firm projects the company's revenue for fiscal years 2026-2028 to reach RMB 1.135 billion, RMB 1.335 billion, and RMB 1.563 billion respectively, representing year-over-year growth of 20.1%, 17.6%, and 17.1%. Net profit attributable to shareholders is expected to be -RMB 61 million, RMB 55 million, and RMB 200 million respectively, with EPS of -RMB 0.08, RMB 0.08, and RMB 0.27. Using PS and FCFF valuation methods and taking a conservative approach, the firm set a target price of HK$11.86 (converted at HK$1 = RMB 0.92).

For fiscal year 2025, the company achieved operating revenue of RMB 945 million, up 10.6% year-over-year. Cloud HCM generated revenue of RMB 722 million, growing 14.2% year-over-year and serving as the primary growth driver. The firm believes that mergers and acquisitions, overseas expansion, and AI will further drive revenue growth in the future.

The company's profitability continues to improve. In fiscal year 2025, it achieved positive operating net cash flow of approximately RMB 77 million, with significantly improved adjusted net profit. The firm believes a profit inflection point is expected to be realized in fiscal year 2026.

BEISEN HOLDING adheres to its "integrated HCM SaaS" strategy and has cumulatively served over 6,000 medium and large enterprises. As China's only cloud HCM solution provider that has built a unified open PaaS platform, Beisen iTalentX has integrated the entire human resources management process, covering employees' complete career lifecycle from recruitment, onboarding, development, promotion to departure. The firm believes that cloud and integration will continue to build Beisen's competitive advantages and facilitate accelerated AI transformation.

In early 2025, AI recruitment startup Mercor achieved a valuation of $2 billion after securing Series B funding. In August, SAP announced the acquisition of AI recruitment company SmartRecruiters to enrich its HCM suite, demonstrating strong overseas trends in AI-driven recruitment automation. Beisen's AI progress has also shown many highlights. The company launched AI product development in 2024 and successfully achieved commercial validation in August of the same year. As of the 2025 fiscal report, it has realized AI commercialization ARR exceeding RMB 6 million. The firm believes that under the trend of widespread AI application, Beisen AI Family is expected to continuously drive the company's performance growth.

Risk factors include: customer demand falling short of expectations; AI product progress not meeting expectations; merger and acquisition integration not meeting expectations; intensified market competition.