Goldman Sachs: KINGDEE INT'L is expected to turn a profit of over 60 million RMB last year, which is below expectations. The target price is lowered to 18.21 yuan

Goldman Sachs published a report stating that, leveraging the enterprise data accumulated by KINGDEE INT'L (00268.HK), utilizing AI, and assisting companies in enhancing productivity, they maintain a positive outlook on the company.

The report indicated that the company's revenue guidance for the second half of 2025 is between RMB 3.76 billion and RMB 3.86 billion, which aligns with the bank's estimate of RMB 3.85 billion. Management pointed out that the growth momentum comes from cloud subscription revenue and the commercialization of enterprise AI solutions. KINGDEE predicts a turnaround to profitability in 2025, with a net profit of RMB 60 million to RMB 100 million (compared to a net loss of RMB 142 million in 2024), mainly benefiting from scale expansion and efficiency improvements, although this forecast is lower than the bank's previous estimate of RMB 178 million.

Goldman Sachs incorporated KINGDEE's guidance for the second half of 2025 and, based on higher-than-expected operating expenses, revised down its earnings forecasts for 2025 to 2027 by 47%, 8%, and 6%, respectively, lowering the target price from HKD 18.98 to HKD 18.21, while maintaining a "Buy" rating