Kingdee International Software Group Co (0268) AI Stock Analysis

• Market Cap: $50.16B
• Dividend Yield: N/A
• Average Volume (3M): 35.65M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.08
• Revenue Growth: 8.26%
• EPS Growth: 39.10%
• Country: HK
• Employees: 12,149
• Sector: Technology
• Sector Strength: 79
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 3,549,468,800
• 10 Day Avg. Volume: 46,308,653
• 30 Day Avg. Volume: 35,646,456
• PEG Ratio: -3.75
• Price to Book (P/B): 7.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -99.06
• 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: $17.27
• Price Target Upside: 19.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 61 Neutral
• Price Target: HK$15.00 ▲(4.17%Upside)

Kingdee International's stock score reflects strong revenue growth and positive technical indicators, offset by profitability challenges and a negative P/E ratio. The stock shows potential in terms of technical momentum, but financial performance and valuation concerns weigh down the score.

Positive Factors

AI Integration

AI deployment fuels positive cloud outlook.

Market Position

Improving confidence on ERP spending, further boosted by stimulus policy, should benefit Kingdee given its strong market position.

Revenue Growth

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

Negative Factors

Cloud Revenue

Cloud revenue growth at 13% y/y, below market expectations.

ERP Adoption

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

Financial 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. makes money through a combination of software licensing, subscription-based cloud services, and professional services. The company's revenue model is primarily centered around selling its ERP software products and offering cloud-based solutions on a subscription basis, which provides a steady stream of recurring income. Additionally, Kingdee generates revenue from consulting, implementation, and support services that accompany its software products. Strategic partnerships with technology companies and continuous investment in research and development also contribute to its earnings by expanding its product offerings and enhancing service capabilities.

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
	EBIT
-335.26M	-419.95M	-398.86M	-371.63M	-382.62M
	EBITDA
-137.28M	219.84M	-52.82M	61.52M	122.66M
	Net Income Common Stockholders
-142.07M	-209.89M	-452.40M	-338.36M	-341.69M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.64B	4.05B	2.63B	3.16B	4.98B
	Total Assets
13.78B	14.14B	11.73B	11.09B	10.72B
	Total Debt
253.33M	841.51M	533.89M	79.79M	171.03M
	Net Debt
-1.28B	-2.12B	-1.41B	-1.97B	-2.58B
	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: 14.40
• 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 14.4 is above the 20-day moving average (MA) of 12.95, above the 50-day MA of 12.78, and above the 200-day MA of 10.47, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 61.76 is Neutral, neither overbought nor oversold. The STOCH value of 82.65 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 *	62 Neutral	$11.80B	10.10	-7.47%	2.99%	7.37%	-8.16%
0268	61 Neutral	$50.16B	―	-1.70%	―	8.26%	39.10%
51N		€885.41M	11.99	8.12%	3.15%	―	―
1588	65 Neutral	HK$2.45B	66.37	3.79%	―	17.66%	97.73%
3896	54 Neutral	HK$28.09B	―	-33.05%	―	13.37%	3.82%
0909	47 Neutral	HK$5.09B	―	-3.94%	3.68%	-14.05%	68.56%
9600	46 Neutral	HK$268.99M	―	-12.13%	―	11.48%	-17.06%

Kingdee International Software Group Co Corporate Events

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.

Kingdee International Announces 2025 Annual General Meeting

Kingdee International Software Group Co. has announced its Annual General Meeting scheduled for May 22, 2025, in Shenzhen, China. The meeting will address several key resolutions, including the adoption of audited accounts, re-election of directors, and re-appointment of auditors. Additionally, the company seeks approval to authorize the board to issue new shares, which could impact its market positioning by potentially increasing its capital base.

Kingdee International Reports Robust Growth in Cloud Subscription Services

Kingdee International Software Group has reported a significant growth in its cloud subscription services, achieving an annual recurring revenue of approximately RMB3.56 billion as of March 2025, marking a 20% year-on-year increase. The company’s cloud platforms have maintained strong Net Dollar Retention ratios, and it has secured several high-profile clients such as Kweichow Moutai and Geely Group, indicating a positive impact on its market positioning and stakeholder confidence.

Kingdee Reports Revenue Growth and Reduced Losses for 2024

Kingdee International Software Group Co. Ltd. reported a 10.2% increase in revenue for the year ended December 31, 2024, driven by a 13.4% growth in its cloud services business, which now accounts for 81.6% of total revenue. The company narrowed its net loss to approximately RMB 142 million, down from RMB 209 million in 2023, attributed to improved economies of scale in its large enterprise business. Kingdee’s strategic initiatives focus on AI integration, enhancing industry-specific solutions, and expanding its global market presence, solidifying its leadership in China’s enterprise application software sector.