CMB International Securities analyst Saiyi He has maintained their bullish stance on KGDEF stock, giving a Buy rating on August 13.
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Saiyi He has given his Buy rating due to a combination of factors that highlight Kingdee International Software Group Co’s promising growth trajectory. The company reported a notable recovery in revenue growth, with a significant increase in cloud subscription revenue, which grew by 22.1% year-over-year in the first half of 2025. This growth in cloud services, which now accounts for over half of the company’s total revenue, underscores Kingdee’s successful transition towards a subscription-based model.
Additionally, Kingdee’s strategic focus on artificial intelligence (AI) is beginning to bear fruit, as evidenced by AI contract values exceeding RMB150 million in the first half of 2025. The company’s AI initiatives, such as the Cosmic AI Agent Platform 2.0, are gaining traction, with a growing user base and improved efficiency in tax and financial applications for SMEs. Management’s guidance for breakeven and significant operating cash flow generation by 2025, along with a strategic emphasis on AI, subscription, and globalization, further supports the positive outlook for Kingdee’s stock.
In another report released on August 13, DBS also maintained a Buy rating on the stock with a HK$21.70 price target.
KGDEF’s price has also changed dramatically for the past six months – from $1.345 to $2.060, which is a 53.16% increase.