MBKINGD@EC2610B

UNI HEALTH

QUANTGROUP

NANFANG COMM

KINTOR PHARMA-B

ILUVATAR COREX

PUTIAN COMM

ZIJING INTL FIN

AE LOGISTICS

JST GROUP

XL2CSOPHYNIX

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Goldman Sachs has downgraded KINGDEE INT'L to "Neutral," with a target price of 12 yuan. The report points out that KINGDEE has launched multiple artificial intelligence agents, which have been applied in several enterprise clients. Although there is a positive outlook on its data processing capabilities, the earnings forecasts for 2025 to 2027 have been lowered by 5%, 14%, and 13% respectively due to a downward revision of revenue forecasts and an increase in operating expense ratios. Goldman Sachs believes that in the short term, artificial intelligence will drive clients' cloud migration, but the increase in native artificial intelligence revenue will take time

AASTOCKS

KINGDEE INT'L

Goldman Sachs downgraded KINGDEE INT'L to "Neutral" with a target price of 12 yuan

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Kingdee International Software Group (OTCMKTS:KGDEY) has reached a new 52-week low, trading at $115.27, down from a previous close of $133.89. The stock's 50-day moving average is $163.40, and the 200-day moving average is $182.54. Despite a Strong Buy rating from analysts, Kingdee is not among the top recommended stocks. The company specializes in enterprise management software and cloud services for SMEs and large organizations.

Market Beat

Tianhong CSI Computer Theme ETF

ChinaAMC CNI HK Connect Technology ETF

Guotai CSI Computer Theme ETF

GK Software SE

Tianhong Hang Seng TECH ETF(QDII)

ChinaAMC Hang Seng Internet Technology Industry ETF(QDII)

Aptitude Software Group plc

Kingdee International Software Group (OTCMKTS:KGDEY) Sets New 1-Year Low  - What's Next?

HSBC Research has lowered the target price for KINGDEE INT'L to 17.7 yuan, maintaining a "Buy" rating. The report points out that KINGDEE INT'L's stock price has risen 24% year-to-date, but investors are concerned about artificial intelligence replacing software. Although subscription revenue is expected to account for 53% of total revenue in the first half of 2025, KINGDEE INT'L still faces intense competition. It is estimated that AI orders will exceed 300 million yuan in 2025, with net profit margins of 1%, 4%, and 8% for 2025 to 2027, respectively. Due to a shortage of central processing units and increased demand for artificial intelligence, gross margin forecasts have been lowered by about 1 percentage point, and net profit forecasts have been reduced by 14% to 25%

HSBC Research lowers KINGDEE INT'L target price to 17.7 yuan, maintains "Buy" rating

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The Hang Seng Tech Index fell 2% intraday, Kingdee International dropped over 8%, and Tencent Music fell over 4%

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Hang Seng TECH Index

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Goldman Sachs report indicates that KINGDEE INT'L is expected to achieve a net profit of HKD 60 million to HKD 100 million in 2025, lower than the expected HKD 178 million. Although the company has growth momentum in cloud subscriptions and AI solutions, the earnings forecasts for 2025 to 2027 have been revised down by 47%, 8%, and 6% respectively due to operating expenses being higher than expected. The target price has been lowered from HKD 18.98 to HKD 18.21, maintaining a "Buy" rating

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

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Baidu, KINGDEE INT'L fell over 4%. Alibaba, KUAISHOU-W, BILIBILI-W, HUA HONG SEMI and others fell over 3%. Risk warning and disclaimer: The market has risks, and investment should be cautious. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial conditions, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investing based on this is at your own risk

Hang Seng Index

HUA HONG SEMI

BILIBILI-W

BABA-W

KUAISHOU-W

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The Hang Seng Index opened down 1.97%, and the Hang Seng Tech Index fell 2.42%

Kingdee International Software Group Company Limited has initiated an equity buyback plan for 354,946,877 shares, which is 10% of its issued share capital. This program, approved by shareholders on May 22, 2025, will enhance the company's net asset value and earnings per share. The buybacks will be financed from legally available funds and will expire at the next Annual General Meeting or if varied or revoked earlier.

marketscreener

Kingdee International Software Group Company Limited commences an Equity Buyback Plan for 354,946,877 shares, representing 10% of its issued share capital, under the authorization approved on May 22, 2025.

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Asian software stocks fell sharply following a global sell-off driven by fears that advancements in artificial intelligence could disrupt traditional business models. Notable declines included a 16% drop for Xero in Sydney and significant losses for TIS and Kingdee International. Despite these losses, analysts suggest that Asia's tech sector, particularly hardware makers, remains resilient, with limited exposure to the AI disruption affecting software firms. Overall, Asian equities held steady, with some markets, like South Korea's Kospi, reaching record highs.

Businesstimes News

Xero Limited

TIS Inc.

AI fears drag Asia software stocks lower after US tech rout

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Asia's software stocks faced significant declines due to fears surrounding AI advancements, mirroring a selloff in the U.S. that wiped $300 billion from software and data stocks. Major losses were seen in Chinese stocks, with Kingdee International down 13% and ITE (Holdings) down 11%. Indian IT firms also suffered, with losses between 5% to 8%. While South Korea's Kospi remained stable, analysts noted that the pullback in Chinese tech shares is largely healthy, focusing on sectors that had previously outperformed.

ITE HOLDINGS

Asia Software Stocks Rattled by AI Fears

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XXF(02473) fell 21%, with a trading turnover 1.4 Billion HKD, and a year-to-date fell 70.3%. KINGDEE INT'L(00268) fell 12.64%, with a trading turnover 1.6 Billion HKD, and a year-to-date fell 16.8%. JST GROUP(06687) fell 11.6%, with a trading turnover 11.1 Million HKD, and a year-to-date fell 29.7%.

Top Gainers & Losers

MEITU

INSPUR DIGI ENT

NEWBORNTOWN

UNISOUND

INNOGEN-B

MINIMAX-WP

Medtide Inc.

Top 10 HK Stock Losers (2.4)

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In the past hour, the Hong Kong stock market has shown a clear divergence, with some individual stocks standing out. Technology stocks and small-cap stocks have experienced significant volatility, with funds seemingly frequently switching between these sectors, leading to an increase in short-term activity. Meanwhile, the number of pressured stocks is also on the rise, reflecting the complexity of market sentiment. Overall, the market pace is relatively fast, with increased volatility in the short term, requiring investors to remain vigilant. The stock with the largest movement in the past hour, SV VISION, saw a decline of 17.00%, attracting market attention. This stock experienced sharp fluctuations in the morning session, with noticeable capital outflows and a subdued short-term sentiment, seemingly dragged down by the overall market mood. 

Strong stocks:
1. PAK TAK INT'L: Up 16.67%, recently performing well with significant capital inflow and high market sentiment.
2. DRINDA: Up 12.25%, with active short-term funds, seemingly driven by favorable industry news.
3. Other stocks like MOBVISTA also showed some resilience, despite a decline of 10.87%, as there were attempts to bottom-fish during the session, indicating some buying support.

Pressured stocks:
1. KINGDEE INT'L: Down 15.09%, with low market sentiment and intensified capital outflows, lacking rebound momentum in the short term.
2. MOBVISTA: Despite a significant decline, there was a slight rebound during the session, showing some interest from investors.
3. The sharp drop of SV VISION has sparked widespread discussion in the market, and it may face greater pressure in the short term

HK Stock Movers Tracker

SV VISION

PAK TAK INT'L

DRINDA

MOBVISTA

Hong Kong Stock Movement Update: PAK TAK INT'L up 16.67%, DRINDA up over 12%, SV VISION down 17%

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The Hang Seng TECH Index fell over 2% intraday, KINGDEE INT'L dropped nearly 14%, and KINGSOFT fell nearly 6%

Hang Seng TECH ETF I

GX HS TECH

ChinaAMC Hang Seng Technology ETF(QDII)

KINGSOFT

ISHARESHSTECH

CSOP HS TECH

Dacheng Hang Seng Technology ETF(QDII)

Huatai-PB CSOP Hang Seng Technology ETF(QDII)

HSTECH ETF

CAM HS TECH

$KINGDEE INT'L(00268.HK)Finally managed to luckily dig out an AI beneficiary stock, but ended up selling at the lowest point due to self-doubt.

MBKINGD@EC2610B(26736.HK)

Goldman Sachs downgraded KINGDEE INT'L to "Neutral" with a target price of 12 yuan

Kingdee International Software Group (OTCMKTS:KGDEY) Sets New 1-Year Low - What's Next?

HSBC Research lowers KINGDEE INT'L target price to 17.7 yuan, maintains "Buy" rating

The Hang Seng Tech Index fell 2% intraday, Kingdee International dropped over 8%, and Tencent Music fell over 4%

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