Singapore Market Roundup, Singapore Market Roundup

Singapore Market Roundup

Thematic (Sector/Industry)

<ul><li>Analysts are bullish on FEHT due to strong second half fiscal year 2024 hotel revenue per available room (RevPAR) and merger and acquisition (M&amp;A) prospects. </li><li>DBS is cautious about the long-term market gains from China's AI breakthrough, expressing skepticism about its potential impact on boosting the market. </li><li>CGSI has upgraded ISDN to 'add' and raised their target price to 35 cents, citing an industrial automation-led recovery as the reason for the upgrade.</li></ul>

Analysts are bullish on FEHT due to strong second half fiscal year 2024 hotel revenue per available room (RevPAR) and merger and acquisition (M&amp;A) prospects. DBS is cautious about the long-term market gains from China's AI breakthrough, expressing skepticism about its potential impact on boosting the market. CGSI has upgraded ISDN to 'add' and raised their target price to 35 cents, citing an industrial automation-led recovery as the reason for the upgrade.

Singapore Market Roundup (13-Feb-2025): FEHT favored for strong RevPAR and M&A in 2HFY2024.

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Kingdee International Software / Equity Bottom-Up

<ul><li>Kingdee reported its 1H23 results: revenue was up 16.8% YoY to RMB2.6bn, 1.2% shy of Bloomberg consensus, while the net loss of RMB284mn was 8% narrower than consensus estimate of RMB307mn loss, indicating an on-track loss reduction.</li><li>Core SaaS product Galaxy’s ARR growth momentum remained healthy with 28.6% YoY growth in subscription ARR.</li><li>Meanwhile, domestic substitution trend continues to drive solid large enterprise revenue growth (+38.4% YoY). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kingdee reported its 1H23 results: revenue was up 16.8% YoY to RMB2.6bn, 1.2% shy of Bloomberg consensus, while the net loss of RMB284mn was 8% narrower than consensus estimate of RMB307mn loss, indicating an on-track loss reduction.Core SaaS product Galaxy’s ARR growth momentum remained healthy with 28.6% YoY growth in subscription ARR.Meanwhile, domestic substitution trend continues to drive solid large enterprise revenue growth (+38.4% YoY). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kingdee (268 HK) – Loss reduction on track

<ul><li>Media reported that Huawei may launch self-developed ERP (MetaERP) in Apr.</li><li>This is negative to the China ERP market as competition heats up but the impacts to Yonyou and Inspur will be larger than Kingdee as the formers are more largeenterprises/ SOEs focused.</li><li>Also, Huawei has to consider the potential implications to its Cloud business as Kingdee/ Yonyou/ Inspur may scale down their cloud resources usage with Huawei Cloud given direct competition in ERP.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Media reported that Huawei may launch self-developed ERP (MetaERP) in Apr.This is negative to the China ERP market as competition heats up but the impacts to Yonyou and Inspur will be larger than Kingdee as the formers are more largeenterprises/ SOEs focused.Also, Huawei has to consider the potential implications to its Cloud business as Kingdee/ Yonyou/ Inspur may scale down their cloud resources usage with Huawei Cloud given direct competition in ERP.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Software & IT Services – Implications of Huawei MetaERP

<ul><li>Kingdee reported in-line FY22 results with revenue growth of +17% YoY to RMB4.87bn.</li><li>Core SaaS product Galaxy growth momentum remained strong with +31.2% YoY growth in subscription ARR.</li><li>The mild decline (-1.4 pts YoY) in dollar retention despite COVID-19 impacts suggested a high user stickiness. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kingdee reported in-line FY22 results with revenue growth of +17% YoY to RMB4.87bn.Core SaaS product Galaxy growth momentum remained strong with +31.2% YoY growth in subscription ARR.The mild decline (-1.4 pts YoY) in dollar retention despite COVID-19 impacts suggested a high user stickiness. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kingdee (268 HK) – SaaS and Xinchuang both in good shape

<ul><li>We expect Kingdee to deliver FY22E revenue of RMB4.8bn (+15% YoY) with net loss widened to RMB395mn (vs. –RMB302mn in FY21).</li><li>Looking into FY23E, ARR growth recovery, core SaaS product Galaxy profitability improvement and Xinchuang initiative will remain as the key growth drivers.</li><li>Our recent channel check suggested an accelerating software local substitution trend. Kingdee’s total bidding won was up +82%/ +141% YoY in FY22/ FY23 YTD, based on dollar amount. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We expect Kingdee to deliver FY22E revenue of RMB4.8bn (+15% YoY) with net loss widened to RMB395mn (vs. –RMB302mn in FY21).Looking into FY23E, ARR growth recovery, core SaaS product Galaxy profitability improvement and Xinchuang initiative will remain as the key growth drivers.Our recent channel check suggested an accelerating software local substitution trend. Kingdee’s total bidding won was up +82%/ +141% YoY in FY22/ FY23 YTD, based on dollar amount. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kingdee (268 HK) – Bidding data implied accelerated software substitution

China

Kingdee International Software Group Company Limited, through its subsidiaries, develops and sells enterprise management software, e-commerce application software and middleware software.  The Company also provides internet-based services and setting up e-commerce platforms for enterprises. In addition, Kingdee provides solution consulting and technical support services.

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Kingdee International Software (268 HK)

Singapore Market Roundup (13-Feb-2025): FEHT favored for strong RevPAR and M&A in 2HFY2024.

FEHT is favored by analysts for strong hotel RevPAR, DBS is skeptical of China's AI breakthrough, and CGSI upgrades ISDN on industrial automation...

Singapore Market Roundup

Kingdee (268 HK) – Loss reduction on track

Kingdee reported its 1H23 results: revenue was up 16.8% YoY to RMB2.6bn, 1.2% shy of Bloomberg consensus, while the net loss of RMB284mn was 8%...

CMB International

China Software & IT Services – Implications of Huawei MetaERP

This is negative to the China ERP market as competition heats up but the impacts to Yonyou and Inspur will be larger than Kingdee as the formers...

CMB International

Kingdee (268 HK) – SaaS and Xinchuang both in good shape

Kingdee reported in-line FY22 results with revenue growth of +17% YoY to RMB4.87bn. Core SaaS product Galaxy growth momentum remained strong with...

CMB International

Kingdee (268 HK) – Bidding data implied accelerated software substitution

We expect Kingdee to deliver FY22E revenue of RMB4.8bn (+15% YoY) with net loss widened to RMB395mn (vs. –RMB302mn in FY21).

CMB International

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