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 1H25 results: revenue was RMB3.19bn, up 11.2% YoY (1H24: 11.9%; 2H24: 8.8%), inline with our forecast and Bloomberg consensus; net loss attributable to ordinary shareholders was RMB97.7mn (1H24: loss of RMB217.9mn), shy of Bloomberg consensus loss of RMB73mn due to slightly higher-than-expected operating expenses.</li><li>Management shared key progresses and development targets regarding its three key strategic focuses: 1) subscription: cloud subscription revenue grew 22.1% YoY in 1H25 and accounted for 52.8% of total revenue; 2) AI: AI contract value exceeded RMB150mn in 1H25, and management guided for AI-related revenue to contribute &gt;30% of total revenue in 2030; 3) globalization: management expects international business revenue to contribute 5-10% of total revenue in 3-5 years.</li><li>We remain positive that Kingdee is one of the key beneficiaries in the AI application era in our coverage universe, and believe progress on AI monetization and recovery in revenue growth, along with recovery in macro and increased digitalization demand could serve as key drivers for its stock price. </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 1H25 results: revenue was RMB3.19bn, up 11.2% YoY (1H24: 11.9%; 2H24: 8.8%), inline with our forecast and Bloomberg consensus; net loss attributable to ordinary shareholders was RMB97.7mn (1H24: loss of RMB217.9mn), shy of Bloomberg consensus loss of RMB73mn due to slightly higher-than-expected operating expenses.Management shared key progresses and development targets regarding its three key strategic focuses: 1) subscription: cloud subscription revenue grew 22.1% YoY in 1H25 and accounted for 52.8% of total revenue; 2) AI: AI contract value exceeded RMB150mn in 1H25, and management guided for AI-related revenue to contribute &gt;30% of total revenue in 2030; 3) globalization: management expects international business revenue to contribute 5-10% of total revenue in 3-5 years.We remain positive that Kingdee is one of the key beneficiaries in the AI application era in our coverage universe, and believe progress on AI monetization and recovery in revenue growth, along with recovery in macro and increased digitalization demand could serve as key drivers for its stock price. 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) - Recovery in Revenue Growth in Line with Expectation, with More Updates on AI

<ul><li>Kingdee reported 2024 results: revenue was RMB6.3bn, up 10% YoY (2023: 17% YoY), 4% short of Bloomberg consensus; dragged by RMB55mn fair value losses on investment properties; net loss attributable to ordinary shareholders was RMB142mn (2023: loss of RMB210mn), shy of Bloomberg consensus at RMB75mn.</li><li>Excluding the impact from fair value loss, Kingdee’s loss reduction effort was largely inline with our expectation, with loss margin narrowing from 3.2% in 2023 to 1.4% in 2024, driven by 0.9ppt improvement in gross margin, on an increase in subscription revenue contribution, as well as operating efficiency improvement.</li><li>We remain positive that Kingdee is well-positioned to benefit from the domestic substitution trend, backed by strong and continuously enhanced product capability and partner ecosystem. </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 2024 results: revenue was RMB6.3bn, up 10% YoY (2023: 17% YoY), 4% short of Bloomberg consensus; dragged by RMB55mn fair value losses on investment properties; net loss attributable to ordinary shareholders was RMB142mn (2023: loss of RMB210mn), shy of Bloomberg consensus at RMB75mn.Excluding the impact from fair value loss, Kingdee’s loss reduction effort was largely inline with our expectation, with loss margin narrowing from 3.2% in 2023 to 1.4% in 2024, driven by 0.9ppt improvement in gross margin, on an increase in subscription revenue contribution, as well as operating efficiency improvement.We remain positive that Kingdee is well-positioned to benefit from the domestic substitution trend, backed by strong and continuously enhanced product capability and partner ecosystem. 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) - AI Related Monetization the Next Key to Watch

<ul><li>Kingdee reported its 1H24 results: revenue was up 11.9% YoY (1H23: 16.8% YoY) to RMB2.87bn, 2% shy of Bloomberg consensus, which in our view can be attributed to a lengthened deal cycle and softer-than-expected growth amid macro headwinds (especially small and micro enterprises, whose YoY revenue growth slowed to 9% YoY in 1H24 from 19% in 1H23), while the net loss of RMB218mn implies a YoY reduction of 23% and was 20% narrower than consensus estimates, which demonstrated Kingdee’s determination to improve operating efficiency.</li><li>Core SaaS product Galaxy’s ARR growth momentum remained healthy with 24% YoY growth in subscription ARR in 1H24 (1H23: +29% YoY).</li><li>Meanwhile, large enterprise revenue growth of 38.9% YoY (1H23: 38.4%) remains solid, in our view. </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 1H24 results: revenue was up 11.9% YoY (1H23: 16.8% YoY) to RMB2.87bn, 2% shy of Bloomberg consensus, which in our view can be attributed to a lengthened deal cycle and softer-than-expected growth amid macro headwinds (especially small and micro enterprises, whose YoY revenue growth slowed to 9% YoY in 1H24 from 19% in 1H23), while the net loss of RMB218mn implies a YoY reduction of 23% and was 20% narrower than consensus estimates, which demonstrated Kingdee’s determination to improve operating efficiency.Core SaaS product Galaxy’s ARR growth momentum remained healthy with 24% YoY growth in subscription ARR in 1H24 (1H23: +29% YoY).Meanwhile, large enterprise revenue growth of 38.9% YoY (1H23: 38.4%) remains solid, in our view. 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) - Macro Headwinds Weighed on Growth; Loss Reduction on Track

<ul><li>Kingdee reported 2023 financial results: revenue was RMB5.7bn, up 17% YoY (2022: 17% YoY), and net loss attributable to ordinary shareholders was RMB210mn (2022: loss of RMB389mn), both in line with our estimate and Bloomberg consensus.</li><li>Kingdee’s loss reduction effort was on track, with loss margin narrowing from -17.9% in 2022 to -12.1% in 2023, driven by 2.6ppt improvement in gross margin, on an increase in subscription revenue, cloud infrastructure cost optimization, as well as operating efficiency improvement.</li><li>We remain positive that Kingdee is well-positioned to benefit from the domestic substitution trend, backed by strong and continuously enhanced product capability and partner ecosystem. </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 2023 financial results: revenue was RMB5.7bn, up 17% YoY (2022: 17% YoY), and net loss attributable to ordinary shareholders was RMB210mn (2022: loss of RMB389mn), both in line with our estimate and Bloomberg consensus.Kingdee’s loss reduction effort was on track, with loss margin narrowing from -17.9% in 2022 to -12.1% in 2023, driven by 2.6ppt improvement in gross margin, on an increase in subscription revenue, cloud infrastructure cost optimization, as well as operating efficiency improvement.We remain positive that Kingdee is well-positioned to benefit from the domestic substitution trend, backed by strong and continuously enhanced product capability and partner ecosystem. 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) - Steady Rev Growth with On-Track Loss Reduction

<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

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)

Kingdee (268 HK) - Recovery in Revenue Growth in Line with Expectation, with More Updates on AI

Our 2025-2027E revenue forecast remains unchanged, and our TP is fine tuned to HK$19.2 (was HK$19.3), based on 8.4x 2025E EV/sales (was 8.5x),...

CMB International

Kingdee (268 HK) - Macro Headwinds Weighed on Growth; Loss Reduction on Track

We maintain BUY rating but lower target price to HK$10.8 per share (was HK$15.5), based on 4.4x 2024E EV/Sales (was 6.4x), in line with the one...

CMB International

Kingdee (268 HK) - Steady Rev Growth with On-Track Loss Reduction

We roll forward our valuation to 2024E, and our new target price of HK$15.5 (prior HK$15.1) is based on 6.4x FY24E EV/sales, in-line with the one...

CMB International

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

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Kingdee (268 HK) - Recovery in Revenue Growth in Line with Expectation, with More Updates on AI

Our 2025-2027E revenue forecast remains unchanged, and our TP is fine tuned to HK$19.2 (was HK$19.3), based on 8.4x 2025E EV/sales (was 8.5x),...

CMB International

Kingdee (268 HK) - AI Related Monetization the Next Key to Watch

Kingdee reported 2024 results: revenue was RMB6.3bn, up 10% YoY (2023: 17% YoY), 4% short of Bloomberg consensus; dragged by RMB55mn fair value...

CMB International

Kingdee (268 HK) - Macro Headwinds Weighed on Growth; Loss Reduction on Track

We maintain BUY rating but lower target price to HK$10.8 per share (was HK$15.5), based on 4.4x 2024E EV/Sales (was 6.4x), in line with the one...

CMB International

Kingdee (268 HK) - Steady Rev Growth with On-Track Loss Reduction

We roll forward our valuation to 2024E, and our new target price of HK$15.5 (prior HK$15.1) is based on 6.4x FY24E EV/sales, in-line with the one...

CMB International

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