Nomura: KINGDEE INT'L's revenue growth last year met market expectations, expected to conclude the intensive investment phase

Nomura's report indicates that Kingdee (00268.HK) announced a positive profit forecast after the market closed yesterday (21st), expecting last year's revenue to be between RMB 6.95 billion and RMB 7.05 billion, with a median of RMB 7 billion, in line with market expectations. The annual net profit is expected to be between RMB 60 million and RMB 100 million, marking the company's first profit in five years, consistent with management's expectations. The company anticipates last year's adjusted net profit to be between RMB 190 million and RMB 240 million, with operating cash flow between RMB 1.09 billion and RMB 1.11 billion.

The firm believes that the company's intensive investment phase in the subscription-as-a-service (SaaS) transformation has concluded, which will make future revenue growth sustainable. Artificial intelligence will become an indispensable part of the company's business, driving accelerated future growth and better profitability. The firm maintains a "Buy" rating on Kingdee with a target price of HKD 18.49, predicting a price-to-sales ratio of 8.7 times