HK Stock Market Move | EDIANYUN (02416) rises by over 3%, expected to see adjusted net profit increase by more than 4.9 times year-on-year. The company is actively expanding its AI business.

EDIANYUN (02416) rose by more than 3%, reaching a 3.38% increase at the time of writing, trading at 2.75 Hong Kong dollars, with a turnover of 41.839 million Hong Kong dollars. On the news front, recently, EDIANYUN announced a profit joy, expecting an adjusted net profit between 75 million and 85 million RMB for the year 2024, an increase of 493%-558.7% compared to 2023. Revenue is expected to be between 1.35 billion and 1.4 billion RMB, an increase of 6.2%-10.2% year-on-year. This is mainly due to the company achieving a significant improvement in sales efficiency, launching the highly praised self-developed PC product AI 01 series to strengthen competitiveness, reducing sales expense ratio, and reducing financial expense ratio. Dongxing released a research report indicating that EDIANYUN is a major provider of comprehensive office IT solutions in China. Since its establishment, the company has innovatively provided small and medium-sized enterprises with a one-stop, reliable, and flexible circular subscription service including no guarantee rental, IT services, SaaS software development, and other office IT hosting services, creating a closed loop office IT industry chain to help enterprises achieve asset-light office IT equipment. The company's customers are mainly small and medium-sized enterprises, and as of June 2024, EDIANYUN has served 50,000 small and medium-sized enterprises, connecting hundreds of thousands of corporate customers, with more than 1.3 million serviced devices. The large number of users provides a good foundation for the company to explore AI applications, and the company is actively expanding its AI business, with opportunities for further expansion in the future.