Hundsun (600570.SS): Asia Financials Corporate Day Takeaways

Research evidence excerpt

Hundsun (600570.SS): Asia Financials Corporate Day Takeaways

Equity Research

25 June 2026 | 5:54PM HKT

Shuo Yang, Ph.D.

+852-2978-0701 | shuo.yang@gs.com

Goldman Sachs (Asia) L.L.C.

Claire Ouyang

+852-2978-6686 |

claire.x.ouyang@gs.com

Bottom line:

We hosted Hundsun‘s IR team at the Asia Financials Corporate Day and summarize

the key takeaways as follows: According to the company, 1) Despite mixed 1Q results

from revenue timing and strategic shifts, a significant increase in contract liabilities

indicates a healthy order backlog, although future full-year revenue growth remains

heavily dependent on Q4 performance. 2) The Xinchuang upgrade cycle is creating

robust demand, while 2026-2027 are projected as peak implementation years, this

will continue to lengthen revenue recognition cycles due to more stringent client

acceptance criteria. 3) The market is trending towards a balance of in-house and

outsourced IT development, which will sustain demand for third-party vendors as

financial institutions re-engage them during critical and complex system upgrades. 4)

Future growth is expected from the Hong Kong subsidiary, which is capitalizing on

new cross-border regulations and virtual asset trading rules, and from corporate

data services benefiting from rising AI-driven data demand. 5) The company aims to

improve future gross margins by shifting its revenue mix toward a subscription

model, while its R&D focus will pivot to AI-native products to boost internal

efficiency ahead of wider client adoption.

Key Takeaways

1. 1Q Result Remarks

n First quarter revenue typically represents a small portion of the full-year total

(~15%-16%) and therefore does not serve as a strong indicator for full-year

performance. The company’s business model, which is primarily based on