00268 Should I Buy

Jefferies maintained a Buy rating on KINGDEE INT'L (00268.HK) due to several key factors: 1. Strong Revenue and Profit Growth: The company announced a 12.5% revenue growth for 2H25 and a significant 135% increase in net profit for the same period, aligning with Jefferies' forecasts and market expectations. 2. Positive Future Outlook: Jefferies anticipates that after achieving break-even in 2025, Kingdee's profits will enter a strong growth trajectory, estimating a compound annual growth rate (CAGR) of 70% for net profit over the next three years. 3. Resilience Against AI Disruption: The broker believes that Kingdee's ERP system is deeply integrated with customer processes and core data, making it less likely to be disrupted by AI technology. Additionally, the company's proactive development of its own AI products supports this view. 4. Top Pick in the Sector: Kingdee is considered Jefferies' top pick in the Chinese software sector, reinforcing their positive outlook on the stock. These factors contributed to Jefferies' decision to maintain a Buy rating with a target price of HKD22.54.