Understanding the Market | KINGDEE INT'L Surges Over 11% as Company's Cloud Transformation Continues to Advance, Accelerated by Domestic Macroeconomic Recovery for Company Growth

Zhitong
2024.10.02 06:27
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Kingdee International surged more than 11%, with a cumulative increase of over 50% in the past four trading days. As of the time of publication, it rose by 11.33% to HKD 10.02, with a turnover of HKD 347 million. On the news front, in the first half of this year, Kingdee International's cloud transformation continued to advance, with cloud service revenue increasing by 17.2% year-on-year to RMB 2.39 billion, accounting for approximately 83.2% of the group's revenue. CITIC Securities stated that as a leader in domestic industry cloud transformation, Kingdee International has accumulated strength and is about to release profits with cloud revenue accounting for over 80%. On one hand, the ERP industry benefits from the demand release driven by "digitalization + localization + AI"; on the other hand, after years of investment and refinement, the cloud products have gradually entered a stable profit release period for the SME product line, with continuous breakthroughs in the large enterprise market and the gradual highlighting of its own advantages. Founder Securities pointed out that with the acceleration of domestic macro repair and company growth, and in the context of overseas interest rate cuts, Kingdee, as a leading Chinese SaaS company, cannot ignore the valuation repair elasticity. Considering the strong background of the domestic manufacturing industry and the continuous acceleration of enterprise digitalization, coupled with the favorable competitive landscape created by the background of domestic substitution, the company's growth prospects are actually better than those of comparable overseas companies that have entered a mature stage

According to the information from Zhitong Finance and Economics APP, KINGDEE INT'L (00268) surged over 11%, with a cumulative increase of over 50% in the past four trading days. As of the time of publication, it rose by 11.33% to HKD 10.02, with a turnover of HKD 347 million.

On the news front, in the first half of this year, KINGDEE INT'L continued to promote cloud transformation, with cloud service revenue increasing by 17.2% year-on-year to RMB 2.39 billion, accounting for approximately 83.2% of the group's revenue. CITIC Securities stated that as a leader in domestic industry cloud transformation, KINGDEE INT'L has accumulated strength and is about to release profits with cloud revenue accounting for over 80%. On one hand, the ERP industry it is in benefits from the demand driven by the "digitalization + localization + AI" triple drivers; on the other hand, after years of investment and refinement, the cloud products have gradually entered a stable profit release period for the SME product line, with continuous breakthroughs in the large enterprise market, highlighting its own advantages.

Meanwhile, Founder Securities pointed out that with the acceleration of domestic macro repair and company growth, and in the context of overseas interest rate cuts, KINGDEE, as a leading Chinese SaaS company, has undeniable valuation recovery elasticity. Considering the strong background of the domestic manufacturing industry and the continuous acceleration of enterprise digitalization, coupled with the favorable competitive landscape created by domestic substitution, the company's growth prospects are actually better than those of comparable overseas companies that have entered a mature stage

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