Jingu Financial News | Tianfeng Securities issued a research report, for 2024H1, the revenue of Bairong Cloud (06608) was 1.321 billion yuan, up 6% year-on-year; gross profit was 0.967 billion yuan, up 8% year-on-year. The growth in revenue and gross profit is mainly attributed to the successful application and commercialization of artificial intelligence (AI) technology. In 2024H1, the company's net income was 0.143 billion yuan, down 31% year-on-year, mainly due to a significant increase in sales and marketing expenses in the first half of the year, rising from 0.461 billion yuan in the same period last year to 0.507 billion yuan, used to increase brand and business promotion to enhance the company's brand awareness and continuously acquire high-quality traffic to improve conversion efficiency. The bank believes that the decrease in the company's net income due to sales and marketing expenses is temporary, and the company is expected to benefit from its investment in publicity and high-quality traffic acquisition in the second half of the year, with revenue and net income expected to increase compared to the previous period.

In 2024H1, the revenue of BaaS in the financial industry cloud was 0.589 billion yuan, a 20% year-on-year increase, mainly benefiting from the rapid increase in transaction volume facilitated: the asset transaction volume in the first half of this year increased by 23% year-on-year to 26.15 billion yuan. In 2024H1, the company deepened cooperation with customers, jointly explored various marketing activities, and facilitated the rapid expansion of asset transaction volume; in addition, as more proprietary users contribute revenue, combined with the customer acquisition advantage in generative AI, continuously improve customer acquisition efficiency, and bring a higher level of ROI. The bank believes that the outstanding data of the company in the core business of BaaS in the financial industry cloud may continue to drive the company's performance upwards in the future.

The bank stated that considering the year-on-year decline in net income in 2024H1, the MaaS business and BaaS insurance industry cloud business are under temporary pressure, so the bank has adjusted the total revenue of the company from FY2024-FY2026 to 3/3.43/4.05 billion yuan from 3.08/3.7/4.34 billion yuan, and adjusted the net income attributable to equity holders from 0.39/0.53/0.58 billion yuan to 0.319/0.381/0.438 billion yuan, maintaining a "buy" rating.