Citi raised Mingyuan Cloud's adjusted net profit forecast for this year and next year to 48 million yuan and 56 million yuan, respectively.
The Zhitong Finance App learned that Citi released a research report stating that it maintains the Mingyuanyun (00909) “sale” rating and raised the adjusted net profit forecast for next year to RMB 48 million and RMB 56 million respectively. The target price was raised from HK$1.5 to HK$1.81. The group's overseas expansion plans and business transformation will take time.
The bank attended the Mingyuan Cloud Investor Conference Call and learned that the management aims for adjusted net profit to reach balance of payments this year, achieving positive operating cash flow and steady revenue growth this year. At the same time, due to better adaptation to the adoption of artificial intelligence and enhanced procurement and outsourcing, management anticipated a 10% drop in operating expenses over the same period last year.