KEEP (03650) climbed more than 6% during morning trading, and was up 5% at HK$6.09 with turnover of HK$3.8975 million at the time of publication.
On the news front, KEEP recently entered into a strategic partnership with SF INTRA-CITY, encompassing online services, offline activities, and rider festival initiatives. For online services, KEEP launched a team version service called "SF INTRA-CITY Rider Sports Circle" specifically for delivery riders. Projections indicate that SF INTRA-CITY riders could contribute approximately 30,000 daily active users to the platform. Regarding offline activities, SF INTRA-CITY plans to organize 8 offline events annually, utilizing KEEP medals as activity incentives.
Notably, according to previously disclosed information, KEEP intends to upgrade its App 8.0 version in 2025, launching an entirely new AI 9.0 version. Powered by large language models, the company aims to create an AI Agent for the intelligent era. Additionally, Kinetic.ai has developed an exclusive sports and health vertical model for KEEP, marking an industry first.
In the first half of this year, KEEP achieved a turnaround to profitability on an adjusted basis, with its AI coach feature progressing smoothly. Founder Securities issued a tracking report stating that KEEP's revenue is expected to stabilize and recover, with continued profit improvements, maintaining a "buy" rating.
The report indicates that KEEP is likely to return to growth momentum in the second half of the year, with AI functionality expected to contribute incremental performance gains. Given the company's strategic contraction of inefficient businesses in the first half, the gradual improvement of AI features and apparel product lines in the second half is expected to support reasonable expense allocation. Revenue is projected to return to growth trajectory while adjusted net profit margin is anticipated to continue improving to above 5%.
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