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Kingdee International Software Group Co Ltd (HK:0268)
:0268
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Kingdee International Software Group Co (0268) AI Stock Analysis

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HK:0268

Kingdee International Software Group Co

(OTC:0268)

Rating:55Neutral
Price Target:
HK$16.50
▼(-1.14% Downside)
Kingdee International's overall stock score is driven by strong revenue growth and a stable balance sheet, but is significantly hindered by poor profitability and valuation metrics. Technical analysis suggests mixed signals, with short-term bearish momentum but longer-term bullish trends. The absence of earnings call data and corporate events limits additional insights.
Positive Factors
AI Integration
The company has integrated comprehensive AI capabilities into its products, such as AI agents.
Cloud Revenue Growth
Cloud subscription revenue grew 22.1% YoY in 1H25 and accounted for 52.8% of total revenue, indicating solid growth in this segment.
Globalization Efforts
Management expects international business revenue to contribute 5-10% of total revenue in 3-5 years, suggesting a positive outlook for globalization efforts.
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.
Earnings Cut
FY25 and FY26 earnings cut by 17% and 3% respectively, to reflect lower profitability in 1H.
Underperformance in Cloud Growth
Cloud revenue growth at 13% y/y, below market expectations.

Kingdee International Software Group Co (0268) vs. iShares MSCI Hong Kong ETF (EWH)

Kingdee International Software Group Co Business Overview & Revenue Model

Company DescriptionKingdee 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 MoneyKingdee 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
65
Positive
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
70
Positive
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.26B5.68B4.87B4.17B3.36B
Gross Profit4.07B3.64B3.00B2.63B2.21B
EBITDA-137.28M219.84M-52.82M61.52M122.66M
Net Income-142.07M-209.89M-452.40M-338.36M-341.69M
Balance Sheet
Total Assets13.78B14.14B11.73B11.09B10.72B
Cash, Cash Equivalents and Short-Term Investments3.64B4.05B2.63B3.16B4.98B
Total Debt253.33M841.51M533.89M79.79M171.03M
Total Liabilities5.65B5.44B4.32B3.28B2.76B
Stockholders Equity8.05B8.60B7.27B7.60B7.79B
Cash Flow
Free Cash Flow252.95M-243.28M-513.28M-111.33M120.13M
Operating Cash Flow933.53M653.32M374.44M660.56M473.02M
Investing Cash Flow-1.07B-1.30B-787.03M-1.20B-1.49B
Financing Cash Flow-1.29B1.67B300.52M-143.84M1.97B

Kingdee International Software Group Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price16.69
Price Trends
50DMA
16.08
Positive
100DMA
14.44
Positive
200DMA
12.67
Positive
Market Momentum
MACD
-0.06
Positive
RSI
52.61
Neutral
STOCH
68.18
Neutral
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 16.69 is below the 20-day moving average (MA) of 16.96, above the 50-day MA of 16.08, and above the 200-day MA of 12.67, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 52.61 is Neutral, neither overbought nor oversold. The STOCH value of 68.18 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$35.62B8.22-10.94%1.88%8.86%-10.36%
55
Neutral
$59.13B-0.26%9.71%84.42%
€1.05B19.716.90%
65
Neutral
HK$2.63B71.323.79%17.66%97.73%
54
Neutral
HK$32.08B-30.89%19.98%-9.04%
50
Neutral
HK$245.39M-14.03%15.44%10.57%
49
Neutral
HK$8.05B-1.31%2.31%-17.48%83.76%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0268
Kingdee International Software Group Co
16.69
10.78
182.40%
DE:51N
AsiaInfo Technologies Limited
1.09
0.55
101.85%
HK:0909
Ming Yuan Cloud Group Holdings Limited
4.32
2.55
144.07%
HK:9600
Newlink Technology Inc.
0.25
-0.01
-3.85%
HK:1588
Chanjet Information Technology Co., Ltd. Class H
8.08
4.63
134.20%
HK:3896
Kingsoft Cloud Holdings Ltd
7.73
6.42
490.08%

Kingdee International Software Group Co Corporate Events

Kingdee Reports Strong Revenue Growth and Strategic Advancements in 2025
Aug 11, 2025

Kingdee International Software Group Co. reported a 11.2% increase in revenue for the first half of 2025, with significant improvements in gross profit and a narrowed loss attributable to owners. The company’s strategic focus on ‘AI First, Subscription First, and Globalization’ has strengthened its market leadership, with notable recognitions from IDC and Gartner, and accolades in AI innovation.

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 Schedules Board Meeting to Discuss Interim Results
Jul 28, 2025

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
May 22, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 13, 2025