1、Asia Pacific Equity Research26 August 2025J P M O R G A NThis material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services within the territory of Mainland China.This material or any portion hereof may not be reprinted,sold or r

2、edistributed without the written consent of J.P.Morgan.Head of Asia Gaming/Leisure and China Software/SaaS ResearchDS Kim AC(852)2800-J.P.Morgan Securities(Asia Pacific)Limited/J.P.Morgan Broking(Hong Kong)LimitedSelina Li(852)2800-J.P.Morgan Securities(Asia Pacific)Limited/J.P.Morgan Broking(Hong K

3、ong)LimitedLindsey Qian(86 21)6106 J.P.Morgan Securities(China)Company LimitedYonyou and Ming Yuan Cloud(MYC),both rated Neutral,reported 2Q/1H25 results after market close today,which align with their profit alerts.In short,both companies,like other vendors such as Glodon(see our takeaway)that have

4、 experienced multi-year downturns,are exhibiting less bad trends,particularly in their margins,led by continued opex/cost discipline&proactive staff adjustments.However,we remain unconvinced of a sustained revenue turnaround due to the frustratingly poor visibility on forward demand,keeping us reluc

5、tant to turn bullish after the sizable stock rally YTD(+60%/+70%for Yonyou/MYC,vs.SHCOMP/HSIs+15%/+27%,although still lagging Kingdees+96%).We stay Neutral on both names,and continue to prefer Kingdee,which we believe can deliver sustainable double-digit top-line momentum with improving profits.Yony

6、ou:2Q in a nutshell.In line with its profit alert(see our takeaway)last month,Yonyous revenue turned positive for the first time in four quarters to+7%y/y,albeit still weaker than then-consensus expectations.It isnt easy to analyze the details as the company stopped disclosing the performance of mos