HK Stock Market Move | KEEP (03650) rose more than 6%, joint SF INTRA-CITY launched the Knight Health Sports Plan, institutions optimistic about AI contributing to performance growth.

KEEP (03650) rose more than 6% in early trading, rising by 5% at the time of publication to HK$6.09 with a turnover of HK$38.975 million. On the news front, Keep recently reached a strategic partnership with SF INTRA-CITY, covering multiple modules including online, offline, and the Knights Festival. Online, Keep has opened a team version service "SF INTRA-CITY Knight Sports Circle" for delivery riders, with an estimated daily activity of 30,000 people brought by SF INTRA-CITY knights. Offline, SF INTRA-CITY will hold 8 offline events annually, using Keep medals as event incentives. Of note, according to public information released earlier, Keep plans to upgrade and iterate on the App 8.0 version in 2025 and release the all-new 9.0 AI version, aiming to create an AI agent in the intelligent era driven by large models. Additionally, Kinetic.ai has developed a sports health niche exclusive model for Keep, a first in the industry. In the first half of this year, Keep turned its profit around from a loss to a profit and made smooth progress with AI coaches. The Founder released a tracking report stating that Keep's revenue is expected to stop falling and improve, with profits continuing to improve. The report maintains a "buy" rating, indicating that Keep is expected to return to a growth trend in the second half of the year, with AI releases expected to contribute to growth. Despite the company's active strategic contraction of inefficient businesses in the first half of the year, in the second half, with the gradual improvement of AI functionality and clothing product lines, the company will cooperate to rationalize its expenses and is expected to see revenue growth return. Additionally, the adjusted net profit margin is expected to continue to improve to above 5%.