The analyst rating from CMBI on KINGDEE INT'L is a "Buy" due to several key reasons:
1. Robust Revenue Growth: The company announced a revenue of RMB7 billion for 2025, reflecting a year-over-year increase of 12%, which aligns with consensus expectations. This indicates strong revenue growth capability.
2. Profitability Improvement: KINGDEE turned from a loss to a profit, recording a net profit of RMB92.9 million, although it was slightly below the consensus estimate. This shift to profitability suggests operational improvements.
3. Commitment to Transformation: The report emphasizes KINGDEE's commitment to business transformation in the AI era, which is seen as a positive factor for future growth.
4. Industry Positioning: Despite short-term competitive pressures from large model vendors in the software industry, CMBI believes that KINGDEE's deep industry experience and high-quality enterprise datasets position it as a core beneficiary of AI applications.
5. Valuation Adjustment: CMBI extended its valuation benchmark to 2026 and adjusted the target price from HKD19.2 to HKD15.1, reflecting a strategic outlook on the company's potential in the evolving market.
Overall, these factors contribute to CMBI's positive outlook and "Buy" rating for KINGDEE INT'L.
