Cathay Pacific Haitong: Target Price of HK$222.71 for the First Time Mingleu Technology-W (02718) “Prudent Increase” rating
The Zhitong Finance App learned that Cathay Pacific Haitong released a research report stating that it covered Minglue Technology-W (02718) for the first time and gave it a “cautious increase in wealth” rating. It is expected to achieve net profit to mother in 2025-2027 - $0.13/0.37/111 million yuan, with revenue of 15/16.6/1.81 billion yuan respectively. Since the company's current net profit is still significantly disrupted by non-cash projects such as changes in the fair value of preferred shares, and there is a risk that short-term PE indicators will be distorted, the bank uses PS valuation to estimate the company 18 times PS over 26 years, corresponding to a reasonable market value of RMB 33.12 billion, corresponding to the company's target price of HK$222.71 (HK$1 = $0.92) conversion).
Cathay Pacific Haitong's main views are as follows:
The company is a leading provider of data intelligence application software in China
25H1 achieved operating revenue of 644 million yuan, +13.9% year over year, which has clearly recovered from the -5.5% decline in revenue for the full year of 2024. From 2022 to 2024, the company's gross margin was 53.2%/50.1%/51.6%, respectively, and further rose to 55.9% in the first half of 2025, reflecting the increase in the share of high-margin businesses in marketing intelligence and cost control through product standardization and AI tools in the field of operational intelligence. At the same time, non-cash items related to the company's listing still cause phased disturbances to the mother's net profit level, but the break-even trend at the operating level is quite clear.
The core business is developing steadily, and the base of major customers is solid
By business division, the company's revenue mainly comes from the three major segments of marketing intelligence, operational intelligence, and industry solutions. Among them, the marketing intelligence business includes second hand systems, AI-driven social media insight and content generation products. 25H1 achieved revenue of 354 million yuan, +9.75% over the same period last year, accounting for 55.01% of the company's total revenue. The intelligent operation business focuses on conversational intelligence and intelligent store operation systems to help offline chain stores achieve “L1-L5 level operation autonomous driving”. 25H1 achieved revenue of 269 million yuan, +16.77% over the same period last year, accounting for 41.71% of the company's total revenue. In terms of industry solutions, the company has actively reduced low-margin, high-customization projects since 2022, and invested more resources in replicable standardized products and large model agents.
Increase investment in large models and agents, and strengthen the leading position in data intelligence
The company continues to increase R&D investment in multi-modal models and smart devices, and launched the generative AI product “Xiaoming Assistant” for enterprise decision-making and operation scenarios, and the InsightFlow CMS, an AIGC product that combines social media insights and content generation to connect marketing insights, content production and delivery optimization.
Risk warning: the risk of increased competition in the data intelligence application software industry; the risk of corporate marketing and IT investment falling short of expectations due to fluctuations in the macro environment, etc.