Key takeaway

The company released its 1H26 results. In 1H26, the company recorded revenue of RMB1.031bn, up 22.28% YoY; net profit attributable to shareholders of the parent company of RMB247mn, up 4.81% YoY; and net profit attributable to shareholders of the parent company excluding non-recurring gains and losses of RMB208mn, down 1.43% YoY. Excluding the impact of one-off intermediary service expenses, net profit attributable to shareholders of the parent company was approximately RMB269mn, up approximately 14.34% YoY. The consumer user base and paid conversion rate continued to grow, the business-facing segment upgraded toward enterprisegrade AI infrastructure, and overseas revenue increased 41.21% YoY, further demonstrating the company's advantages in globalization and product differentiation; we maintain “Buy” rating.

Event

On August 19, the company released its 1H26 results. In 1H26, the company recorded operating revenue of RMB1.031bn, up 22.28% YoY; net profit attributable to shareholders of the parent company of RMB247mn, up 4.81% YoY; and net profit attributable to shareholders of the parent company excluding non-recurring gains and losses of RMB208mn, down 1.43% YoY.

Quick take

Core operating trends remained positive, while profit came under short-term pressure due to one-off expenses and increased R&D investment. In 1H26, the company's operating revenue increased 22.28% YoY, while net profit attributable to shareholders of the parent company increased 4.81% YoY; in 2Q26 alone, operating revenue reached RMB527mn, up 17.66% YoY, net profit attributable to shareholders of the parent company was RMB91mn, down 23.30% YoY, and net profit attributable to shareholders of the parent company excluding non-recurring gains and losses was RMB77mn, down 27.82% YoY. During the reporting period, the company's overall gross margin was 86.95%, up 0.66 pct YoY; profit grew more slowly than revenue, mainly due to the one-off recognition of previously capitalized capital-market intermediary service expenses and increased R&D investment. Excluding this impact, net profit attributable to shareholders of the parent company was approximately RMB269mn, up approximately 14.34% YoY. Net cash flow from operating activities reached RMB274mn during the same period, up 46.57% YoY. Overall, the company's operations remained steady, while short-term pressure on profit mainly reflected one-off expenses and proactive, front-loaded investment; core operating trends remained positive. .

Growth in consumer-facing users and paid user conversion, together with mature products, further strengthens the foundation for the company’s steady growth. In 1H26, the company’s consumer-facing intelligent text recognition and commercial big data products generated revenue of RMB894mn, up 24.61% YoY and accounting for approximately 87% of principal business revenue. As of June 2026, monthly active users of the company’s major consumer-facing products reached 199mn, up 9.94% YoY; cumulative paying users over the past 12 months reached 10.2034mn, up 19.68% YoY. Paying users grew significantly faster than monthly active users, while product innovation, scenario expansion, and paid conversion jointly drove revenue growth. The company continues to iterate AI features based on users’ genuine needs, leveraging its long-term product expertise to enhance user experience and commercial value. CamScanner continued to upgrade its intelligent scanning, smart document services, and cross-platform collaboration capabilities. It launched features including AI high-definition filters, large-format scanning, and cross-modal content authenticity verification, expanding its use cases to engineering drawings, large-scale artwork, images and text from ancient books, and professional office work. CamCard is exploring value-added services centered on AI audio transcription and translation, business card insights, business networking, and customer follow-up. The company continues to integrate AI capabilities into mature products and high-frequency use cases to increase usage frequency and willingness to pay. Its large user base is expected to continue translating into subscription revenue growth.

Enterprise-facing products are accelerating their upgrade into enterprise AI infrastructure, while standardized and platform-based capabilities are expected to unlock growth potential. In 1H26, the company’s enterprise-facing products and services generated revenue of RMB131mn, up 8.69% YoY. TextIn is evolving from a traditional document recognition and process automation product into enterprise AI infrastructure spanning the “data foundation—Agent platform—industry applications” architecture. XParse provides parsing, segmentation, retrieval, knowledge accumulation, and memory management capabilities for multi-source unstructured data, creating a data foundation for enterprise knowledge bases, retrievalaugmented generation, and Agents. Docflow supports workflow orchestration, tool invocation, human-machine collaboration, review, and execution, and can connect with ERP, financial, and business systems. Qixin Huiyan has evolved from a tool into an intelligent Agent centered on “AI × data.” During the reporting period, the products focused on four use cases: AI procurement and sourcing, AI-powered marketing and customer acquisition, AI due diligence assistants, and AI-powered enterprise intelligence. They leverage commercial databases and knowledge graphs to support supply chain risk control, corporate marketing, and compliance management. The company currently serves thousands of leading customers across industries including manufacturing, semiconductors, automotive, and financial services. As enterprise AI applications gradually move from model trials into business processes, demand for high-quality data parsing, knowledge accumulation, and Agent orchestration is expected to increase. TextIn and Qixin Huiyan are expected to drive the B-end business toward a standardized, platform-based, and replicable model.

Overseas business growth outpaced the company overall, further demonstrating its advantages in globalization and product differentiation. In 1H26, the company’s overseas revenue reached RMB394mn, up 41.21% YoY. Overseas revenue accounted for 38.26% of total revenue, up 5.13 pcts YoY. The overseas version of CamScanner continued to enhance its capabilities in smart scanning, AI-powered large-format image stitching, image authenticity verification, and desktop document processing. The company’s overseas education products integrated AI-powered explanations, video-based instruction, AI tutoring, and flashcard tools into the learning process. The overseas version of CamCard focused on business networking and contact management, exploring an expansion from contact storage to business opportunity discovery and recommended actions. Users in overseas markets have stronger willingness to pay and more diverse use cases. Through continuous differentiated product innovation, the company is expected to increase user penetration and paid conversion in overseas markets, while further raising the share of overseas revenue.

Investment recommendation: The company’s core operating trends remain positive, its overseas business continues to deliver strong growth, and long-term product investment is expected to support steady growth. The company’s C-end products have a large global user base. User growth, paid conversion, and iterations of AI features jointly drive steady revenue growth. The B-end business is being upgraded into enterprise-grade AI infrastructure covering the data foundation, Agent platforms, and industry applications. Overseas business growth continues to outpace the company overall, highlighting the sustained advantages of its global products. The company’s operating revenue is projected at RMB2.319bn/RMB2.938bn/RMB3.656bn for 2026–2028, respectively, with net profit attributable to shareholders of the parent company at RMB557mn/RMB698mn/RMB865mn and EPS at RMB2.84/RMB3.56/RMB4.41. Based on the current share price, the corresponding PE multiples are 31.03x/24.76x/20.00x. We maintain “Buy” rating.

Risks

(1) Risk of intensified market competition. As artificial intelligence and big data technologies become increasingly mature, favorable government policies are accelerating the development of the industry ecosystem. The number of new market entrants is expected to continue rising, and competition across the industry will gradually intensify. The company’s business big data operations and intelligent text recognit ion operations are both exposed to the risk of intensified market competition.

(2) Data security and personal privacy protection risks. Leveraging artificial intelligence and business big data technologies, the company provides consumer-facing products to individual users and business-facing services to enterprise customers. During its business operations, the company obtains relevant user data as needed. The company is therefore exposed to risks related to data security and personal privacy protection.

(3) Overseas operating risks. The company’s overseas operations are subject to complex legal and regulatory environments. If the company fails to fully comply with the laws or regulations of the jurisdictions where its products are sold, it may face corresponding penalties, which could affect its local operations.