CMB International Securities analyst Saiyi He maintained a Buy rating on Kingdee International Software Group Co today and set a price target of HK$15.10.
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Saiyi He has given his Buy rating due to a combination of factors tied to Kingdee’s execution and positioning in the AI era. The company is delivering steady double-digit revenue growth while turning from loss to profit, and its rising cloud contribution, strong ARR and contract-liability trends signal resilient, recurring demand despite a challenging macro backdrop.
At the same time, Kingdee is using AI to materially improve efficiency, cutting headcount while lifting productivity, which supports a clear margin expansion path ahead of consensus. Management’s guidance for faster profit growth, robust operating cash flow and sizable share repurchases, together with Kingdee’s status as a prime AI-application beneficiary in China software, underpins He’s view that the current valuation leaves room for a rerating.
He covers the Communication Services sector, focusing on stocks such as Iqiyi, Baidu, and Meta Platforms. According to TipRanks, He has an average return of 7.5% and a 47.78% success rate on recommended stocks.
In another report released today, DBS also maintained a Buy rating on the stock with a HK$14.30 price target.