Kingdee International Software Group Co (0268) AI Stock Analysis

• Market Cap: HK$65.86B
• Dividend Yield: N/A
• Average Volume (3M): 37.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.01
• Revenue Growth: 8.26%
• EPS Growth: 39.10%
• Country: HK
• Employees: 12,149
• Sector: Technology
• Sector Strength: 92
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 3,549,468,800
• 10 Day Avg. Volume: 41,835,221
• 30 Day Avg. Volume: 37,059,951
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$16.96
• Price Target Upside: -8.79% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 63 Neutral
• Price Target: HK$19.50 ▲(4.90% Upside)

Kingdee International's stock score is primarily driven by strong revenue growth and stable financials, despite profitability challenges. Technical indicators show bullish momentum, providing some optimism. However, poor valuation metrics and lack of dividend yield weigh heavily on the score.

Positive Factors

AI and Cloud Adoption

AI deployment fuels positive cloud outlook.

Market Position

Kingdee is the second-largest ERP player in China, with approximately 20% market share.

Revenue Growth

Kingdee announced adding 15% of subscription fee for advanced implementation services, stock up 11% in Hong Kong.

Negative Factors

Cloud Adoption Challenges

Slower-than-expected ERP cloud adoption due to economic uncertainties and business closure of SMEs will slow down the growth of cloud ERP segment.

Revenue Decline Concerns

The revenue decline in theory does not bode well for the stock in the near term and could renew concerns about their path to profitability in 2025.

Revenue Performance

Revenue came in at RMB6.26Bn, +10.2% YoY, missing consensus estimates.

Kingdee International Software Group Co Business Overview & Revenue Model

Company Description

Kingdee International Software Group Company Limited, an investment holding company, engages in the enterprise resource planning business. The company operates through ERP Business and Others, Cloud Services Business, and Investment Properties Operating Business segments. The ERP Business and Others segment sells software and hardware products; and provides software solution consulting, maintenance, upgrade, and other supporting services, as well as software implementation services. The Cloud Services Business segment provides enterprise, finance, industry, and other cloud services. The Investment Properties Operating Business segment invests in properties. The company also designs, develops, manufactures, and sells software and hardware products; provides software-related and online financial services; and develops Internet and online pay technologies. It serves enterprises, government agencies, and other organizations worldwide. The company was founded in 1993 and is headquartered in Shenzhen, the People's Republic of China.

How the Company Makes Money

Kingdee International Software Group Co generates revenue primarily through the sale of enterprise management software and cloud services. The company's revenue model is based on software licensing fees, subscription fees for cloud-based services, and maintenance and support services. Key revenue streams include ERP software solutions, which are licensed to businesses, and cloud services that operate on a subscription basis, providing a recurring revenue model. Kingdee also partners with other technology and service providers to enhance its product offerings and expand its customer base, further contributing to its earnings.

Kingdee International Software Group Co Financial Statement Overview

Summary

Kingdee International demonstrates strong revenue growth and a stable balance sheet with low leverage. However, the company struggles with profitability, reflected in negative net income and return on equity. Cash flow improvements are promising, but volatility remains a concern.

Income Statement

Kingdee International has shown consistent revenue growth over the years, with a notable 10.1% increase in 2024. However, the company faces profitability challenges, as indicated by negative EBIT and net income margins over the past few years. The gross profit margin remains strong at 65.1% in 2024, but the negative net profit margin of -2.3% highlights ongoing profitability issues.

Balance Sheet

The balance sheet of Kingdee International is relatively strong, with a high equity ratio of 58.4% indicating stability. The debt-to-equity ratio is low at 0.03, suggesting low leverage. However, the return on equity remains negative due to persistent net losses, which is a concern for long-term profitability.

Cash Flow

Kingdee International's cash flow statement shows promising improvements in free cash flow, which turned positive in 2024 after significant negative figures in previous years. The operating cash flow to net income ratio is strong at -6.6, reflecting efficient cash generation relative to net income. However, free cash flow growth has been volatile, posing potential risks.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.26B	5.68B	4.87B	4.17B	3.36B
Gross Profit	4.07B	3.64B	3.00B	2.63B	2.21B
EBITDA	-137.28M	219.84M	-52.82M	61.52M	122.66M
Net Income	-142.07M	-209.89M	-452.40M	-338.36M	-341.69M
Balance Sheet
Total Assets	13.78B	14.14B	11.73B	11.09B	10.72B
Cash, Cash Equivalents and Short-Term Investments	3.64B	4.05B	2.63B	3.16B	4.98B
Total Debt	253.33M	841.51M	533.89M	79.79M	171.03M
Total Liabilities	5.65B	5.44B	4.32B	3.28B	2.76B
Stockholders Equity	8.05B	8.60B	7.27B	7.60B	7.79B
Cash Flow
Free Cash Flow	252.95M	-243.28M	-513.28M	-111.33M	120.13M
Operating Cash Flow	933.53M	653.32M	374.44M	660.56M	473.02M
Investing Cash Flow	-1.07B	-1.30B	-787.03M	-1.20B	-1.49B
Financing Cash Flow	-1.29B	1.67B	300.52M	-143.84M	1.97B

Kingdee International Software Group Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0268, the sentiment is Positive. The current price of 18.59 is above the 20-day moving average (MA) of 16.64, above the 50-day MA of 15.05, and above the 200-day MA of 12.06, indicating a bullish trend. The MACD of 0.93 indicates Negative momentum. The RSI at 67.01 is Neutral, neither overbought nor oversold. The STOCH value of 83.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0268.

Kingdee International Software Group Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	69 Neutral	¥234.30B	14.83	7.64%	2.58%	9.20%	5.94%
0268	63 Neutral	HK$65.86B	―	-1.70%	―	8.26%	39.10%
51N	―	$1.18B	15.91	6.90%	2.45%	―	―
1588	65 Neutral	$2.62B	70.96	3.79%	―	17.66%	97.73%
3896	58 Neutral	HK$31.58B	―	-33.05%	―	13.37%	3.82%
9600	50 Neutral	HK$278.43M	―	-12.13%	―	11.48%	-19.34%
0909	49 Neutral	HK$6.27B	―	-3.94%	3.07%	-14.05%	68.56%

Kingdee International Software Group Co Corporate Events

Kingdee International Schedules Board Meeting to Discuss Interim Results

Kingdee International Software Group has announced a board meeting scheduled for August 11, 2025, to discuss and approve the interim results and potential interim dividend for the six months ending June 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholders’ perceptions and the company’s market positioning.

The most recent analyst rating on (HK:0268) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Kingdee International Software Group Co stock, see the HK:0268 Stock Forecast page.

Kingdee International Announces Successful AGM Outcomes

Kingdee International Software Group Co. Ltd. announced the results of its Annual General Meeting held on May 22, 2025, where all proposed ordinary resolutions were passed. These included the adoption of audited financial accounts, re-election of directors, and authorization for the board to manage directors’ remuneration and share-related mandates. The approval of these resolutions reflects strong shareholder support and positions the company for continued strategic governance and operational flexibility.

The most recent analyst rating on (HK:0268) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Kingdee International Software Group Co stock, see the HK:0268 Stock Forecast page.