Yang Liu CFA, an analyst from Morgan Stanley, maintained the Buy rating on Beisen Holding Ltd. (9669 – Research Report). The associated price target was raised to HK$6.50.
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Yang Liu CFA has given his Buy rating due to a combination of factors that highlight Beisen Holding Ltd.’s strong growth potential and profitability. The company is distinguished as a unique business-to-business software provider in China that effectively leverages AI to drive revenue growth. This capability is evident in Beisen’s ability to maintain a 15-20% year-over-year top-line growth and its break-even guidance for the fiscal year 2026.
Moreover, Beisen’s AI offerings have shown impressive results, with five out of seven AI functions already generating annual recurring revenue (ARR). The AI ARR has notably doubled within a short period, indicating robust demand and successful implementation. Additionally, Beisen’s AI solutions boast a high gross profit margin of 80-90%, compared to a blended gross profit margin of 60% in fiscal year 2025, demonstrating the company’s efficient use of its existing R&D team to develop profitable AI products.