KINGDEE INT'L rose 6.6% in half a day, UBS pointed out that the profit margin outlook is positive, Morgan Stanley: first quarter operations are on track

KINGDEE INT'L (00268.HK) opened up 5.75% today (14th), reaching a high of HKD 8.89. It closed at HKD 8.53 for the half-day, up 6.62%, with a trading volume of 46.817 million shares, involving HKD 404 million.

The group announced its operating data for the first quarter of this year after the market closed yesterday (13th). As of March 31 this year, the annual recurring revenue (ARR) from subscription services was approximately RMB 4.22 billion, an annual growth of about 19%. In the first quarter of this year, the contract amount for AI-native products (KINGDEE AI Suite) reached RMB 230 million.

UBS published a research report stating that KINGDEE INT'L's management maintains its AI revenue target of RMB 1 billion for the year, which will be achieved by providing AI-enabled ERP solutions. The bank believes that due to AI enhancing R&D and delivery efficiency, KINGDEE's profit margin outlook is positive; it set a target price of HKD 10.7, with a rating of "Neutral."

In addition, Morgan Stanley also released a research report, believing that KINGDEE's operations in the first quarter are on track, and profitability has significantly improved year-on-year; it gave a "Market Perform" rating with a target price of HKD 11.5