Zhongtai Securities issued a research report maintaining its "Buy" rating on MING YUAN CLOUD (00909), forecasting the company's revenue for 2025-2027 at RMB 1.318 billion, RMB 1.271 billion, and RMB 1.266 billion respectively, with net profit attributable to shareholders projected at RMB 18 million, RMB 30 million, and RMB 44 million respectively.
In H1 2025, the company reported revenue of RMB 606 million, down 15.9% year-over-year. Net profit attributable to shareholders reached RMB 13.75 million, while adjusted net profit was RMB 33.12 million, both turning from losses to profits year-over-year. Net cash outflow from operating activities was approximately RMB 43 million, representing a 74.0% reduction in net outflow compared to the same period last year.
During H1 2025, the company's revenue continued to face pressure from the downturn in downstream industries, with ongoing revenue decline. However, through strengthened cost and expense management and improved organizational operational efficiency, the company achieved positive profitability within the half-year period.
**Revenue Under Continued Pressure, AI Enhancement Boosts Cloud Client Unit Price**
The company's H1 2025 revenue declined 15.9% year-over-year, continuing to face pressure due to the persistent downturn in the downstream real estate and construction industries. In terms of product business, the customer relationship management product line generated RMB 383 million in revenue during H1 2025, down 13.1% year-over-year. The main product, Cloud Client, achieved revenue of RMB 377 million in H1 2025, declining 5.1% year-over-year. This decline was smaller than both the company's overall revenue decrease and the customer relationship management product line's revenue decline, demonstrating certain resilience.
The company increased investment and product promotion in Cloud Client AI-related areas. In H1 2025, Cloud Client AI products achieved terminal contract signings of approximately RMB 32 million, exceeding the full-year contract amount for 2024. Driven by accelerated AI product promotion, the average unit price per sales office for Cloud Client in H1 2025 was RMB 37,700, up 2.4% from the same period last year. This increase was primarily due to customers' increased procurement of Cloud Client AI products.
**Lean Operations Continue to Advance, Cost Reduction and Efficiency Enhancement Drive Profit Turnaround**
During H1 2025, the company continued implementing lean operations to achieve cost reduction and efficiency improvements, particularly through increased use of intelligent tools to enhance organizational efficiency. In customer service and R&D, the company continued to increase AI tool utilization. In marketing, the company proactively adjusted channel signing ratios based on market changes, resulting in overall commission expense reductions.
In H1 2025, the company's sales, administrative, and R&D expenses were RMB 317 million, RMB 61 million, and RMB 205 million respectively, declining 22.2%, 56.5%, and 19.4% year-over-year. Improved organizational operational efficiency and further effective expense control enabled the company to achieve positive profitability in H1 2025, with net profit attributable to shareholders of RMB 13.75 million and adjusted net profit of RMB 33.12 million, both turning from losses to profits year-over-year.
**Business Outlook: Strategic Focus and Resource Allocation Optimization, AI + Overseas Expansion Breakthrough**
Looking ahead to H2 2025, the company will focus on key initiatives and breakthroughs in the following areas:
1) **Domestic Market Strategic Focus, Continuously Improving Profitability.** In H2 2025, the company will focus on core products and key customers in the domestic market, ensuring profit-oriented value creation. The company will continue strict project signing standards and reduce dependence on residential developer clients. In terms of products, new product development will focus on high-profit, high-potential sectors, increasing AI product investment, while existing core products will focus on maximizing value from existing customers to achieve full value chain profitability for core products.
2) **Increased Overseas Market Investment, Accelerating Global Market Layout.** In H2 2025, the company will actively enter Middle Eastern and European markets, introduce key talent, establish localized teams in important regions, and accelerate internationalization through investment and M&A activities. On the product side, the company will continuously iterate existing products and accelerate their promotion and market expansion.
3) **Accelerating AI+SaaS Product Innovation, Opening Business Growth Space.** The company will maintain its AI+SaaS product strategy, accelerating deep integration of AI technology with real estate business scenarios, while prioritizing "AI+Marketing" product development and promotion. On the commercial front, it will explore usage-based business models in addition to subscription-based models.
4) **Optimizing Resource and Talent Allocation, Achieving Operational Efficiency Upgrades.** The company will continue implementing internal resource and talent allocation optimization, further improving performance mechanisms and controlling personnel scale. All R&D, delivery, and functional work will comprehensively apply AI tools to continuously improve human efficiency and reduce costs.
**Risk Warnings:** Under expectations of real estate industry development, continued pressure on property companies' operations may lead to IT budget amounts falling short of expectations; cloud service product promotion may not meet expectations; AI-related technological breakthrough progress may not meet expectations; intensified competition for R&D talent and product development risks may not meet expectations.