2025财年回顾：投资人工智能以推动收入和盈利能力的双重增长

FY25 review: investing in AI to drive dualgrowth in revenue and profitability Target PriceHK$10.80(Previous TPHK$16.00)Up/Downside41.7%Current PriceHK$7.62 DmallannouncedFY25results: total revenuegrewby20%YoY to RMB2.23bn,largelyin line with our estimate; adjusted net profitincreased by 583% YoY toRMB203mn, ahead of our estimate of RMB134mn, thanks to the operatingleverage and effective cost control. The company leveragesAI to drive qualityrevenue growth andefficiencyimprovement. Total revenue from the AI businessreached RMB64.4mn in FY25. Looking into FY26E, Dmall will continue tointegrate AI technology into its R&D chain and retail solutions, in order to drivedual growth in retail sales revenue and operational efficiency. The company alsoannouncedtochange the use of the unutilized net proceeds(RMB194mn)fromthetop-up subscription completed in 2025, from blockchain to AI, furtheracceleratingits AI development in 2026.Wemaintainour FY26-27earningsforecastslargely unchanged,butlowerour target price to HK$10.80 based on3.0x FY26E EV/sales, given the decline in SaaSsectorvaluation(previous:HK$16.00 on6.0x FY25E EV/sales).That said, we remain upbeat on the long-termopportunitiesin AI retail.Maintain BUY. China Software & IT Services Saiyi HE, CFA(852) 3916 1739hesaiyi@cmbi.com.hk Wentao LU, CFAluwentao@cmbi.com.hk Ye TAO, CFA(852) 3850 5226franktao@cmbi.com.hk Solid revenue growth from AI retail solutions.Revenue from AIRetailCore Solutiongrew by 22% YoY to RMB1.06bn in FY25, primarily driven bythe expansion of customer base. The company deepened collaboration withkey customers like Pangdonglai, fromthe initial Weixin mini programsolutions to the integration ofRetail Core Solution modules such as storeoperations. The companyalsoacquiredseveral new key accounts in FY25,such as Shanghai Tangjiu, Xinjiang Wuika, andZhuzhou Department Storeetc. Revenue from AIRetail Value-Added Servicesincreased by 18% YoYto RMB1.16bn in FY25, primarily driven by the increase inrevenuefromintelligent cashier, intelligent package sortingandintelligent merchandisingsolutions. Shuyin GUO(852) 3916 3716guoshuyin@cmbi.com.hk AI to drive dual growth in revenue and profitability.AI has become akey driver of revenue growth andefficiencyimprovement. 1) On the revenuefront: the company has deployed 10 major retail AI applications scenariosin2025,including product selection,dynamic pricing and intelligentreplenishmentetc.Total revenue from the AI business reached RMB64mnin FY25; 2) On the internalefficiencyfront:100% ofthe company’sR&Dpersonnel used AI-assisted development tools, which significantly improvedproduct iteration speedand shortenedproject delivery cycle. Strategicfocus in FY26.For FY26,the company will focus on:1)leveraging AI to upgrade its R&D system and further enhancing R&Defficiency; 2) implementing AI agents such as“AI Merchandise Agent” andthe “AI Store Agent”to capture new growthopportunities; 3) increasingefforts to expand into overseas market, while deepening presence in thedomestic market. Source: FactSet Business forecasts updateand valuation Our target priceofHK$10.80isbased on3.0x FY26E EV/sales.Our valuation multiple islargely on par with theaverage EV/sales ofChinaSaaS peers. Disclosures& Disclaimers Analyst CertificationThe research analyst who is primary responsible for the content of this research report, in whole or in part, certifies thatwith respect to the securities or issuer thatthe analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject securities or issuer; and (2)no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report.Besides, the analyst confirms that neither the analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and Futures Commission) (1) have dealt in or tradedin the stock(s) covered in this research report within 30 calendar days prior to the date of issue of this report; (2) willdeal in or trade in the stock(s) covered in this research report 3 business days after the date of issue of this report; (3)serve as an officer of any of the HongKong listed companies covered in this report; and (4) have any financial interests in the Hong Kong listed companies coveredin this report. CMBIGM RatingsBUY : Stock with potential return of over 15% over next12 monthsHOLD: Stock with potential return of +15% to-10% over next 12 monthsSELL: Stock with potential loss of over 10% over next 12 monthsNOT RATED: Stock is not rated byCMBIGM :Industry expected to outperform therelevant broad market benchmark over next 12 months:Industry expected to perform in-line with the relevant broad market benchmark over next 12 months:Industry expected to underperform the relevant broad market benchmark over next 12 monthsCMB InternationalGlobal MarketsLimited Address: 45/F, Champion Tower, 3 Garden