英文【高盛】中国软件2025年第一季度业绩回顾；优质新产品推动增长；盈利能力仍是关键关注点

We review our China Software coverage based on 1Q25 performance and update our estimates to reflect our latest views. In 1Q25, the avg. revenue growth of our coverage was 6% YoY, and avg. net margin was -3% due to weak seasonality of 1Q. Looking into 2H25, software companies are focused on (1) high-quality products/ projects carrying better margins, (2) new products/ product upgrades with high client interest, and (3) new AI features. Meanwhile, companies are prioritizing profitability improvement this year through headcount optimization and cost control measures. With the generative AI trend and the uncertain macro environment, we continue to prefer software companies with higher revenue visibility. Maintain Buy on Empyrean/ Kingdee/ Kingsoft Office, Neutral on Yonyou/ Glodon, and Sell on ZWSOFT/ Thundersoft/ Primarius/ Sangfor. Read more: China Software 2H25 outlook; China Software monthly. Ting Song +852-2978-6466 | ting.song@gs.com Goldman Sachs (Asia) L.L.C. Allen Chang +852-2978-2930 | allen.k.chang@gs.com Goldman Sachs (Asia) L.L.C. Verena Jeng +852-2978-1681 | verena.jeng@gs.com Goldman Sachs (Asia) L.L.C.China Software: 1Q25 result review; quality new products to drive growth; profitability remains key focus20 May 2025 | 1:59AM HKT Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to www.gs.com/research/hedge.html. Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S. Glodon: Improving profitability on mix upgrade and cost mgmt., while near-term demand remains challenging; Neutral Glodon 1Q25 revenues were down 5% YoY to Rmb1.2bn, with construction cost revenues down 5% YoY, and construction management software revenues down 11% YoY. Management attributed slower revenue growth to muted demand from property market and company’s headcount optimization. On construction cost, the company extends to more valued-added features (cost management, integration of design and cost) and focuses on new opportunities from new pricing list. On construction mgmt., Glodon prioritizes improving product mix towards software solutions carrying lower margin. Despite near-term demand remaining challenging, we see improving profitability with mix upgrade and cost management. Strategy on new product expansion: Glodon continues to enhance its AI capabilities, from a foundational model focusing on the construction industry, to AI applications. Management notes the company’s AI solutions focus on (1) enhancing the efficiency of design and cost management, and (2) project-level solutions incorporating high-quality data. Mgmt. also highlights growing dema