"Big Banks" Bank of America Securities: Kingdee's performance last year met expectations, target price 20.2 yuan

Bank of America Securities published a research report stating that Kingdee International (00268.HK) announced its fiscal year 2025 results after the market closed yesterday (17th). Revenue grew by 12% year-on-year to RMB 7 billion (same below), with a net profit of RMB 93 million, both in line with the company's profit forecast. The monetization of artificial intelligence continues to advance, with the contract value of AI products reaching RMB 356 million in fiscal year 2025, accounting for approximately 5% of revenue. As of the fourth quarter of 2025, annual recurring revenue (ARR) from subscription services grew by 19% year-on-year to RMB 4.09 billion.

In summary, the firm believes that Kingdee has achieved resilient revenue growth, improved annual ARR trends in the fourth quarter, and an increase in net dollar retention rates among large and medium-sized clients. Based on the rise in subscription revenue and the clear growth prospects driven by AI monetization, the firm maintains a "Buy" rating on Kingdee, with a target price of RMB 20.2