Kingdee International Software Group Co (0268) AI Stock Analysis

• Market Cap: $42.29B
• Dividend Yield: N/A
• Average Volume (3M): 54.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.06
• Revenue Growth: 8.26%
• EPS Growth: 39.10%
• Country: HK
• Employees: 12,036
• Sector: Technology
• Sector Strength: 46
• Industry: Software
• EPS (TTM): -0.04
• Shares Outstanding: 3,548,703,900
• 10 Day Avg. Volume: 39,204,154
• 30 Day Avg. Volume: 54,718,351
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 7.83
• Price to Cash Flow (P/CF): N/A
• 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: $16.91
• Price Target Upside: 39.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

Kingdee International Software Group Co's stock score is primarily affected by its financial performance and valuation. While the company shows strong revenue growth and a stable balance sheet, its negative profitability and lack of dividend yield weigh heavily. Technical analysis indicates a neutral to bearish trend, without strong directional signals. Enhancing profitability is crucial for improving its overall financial and valuation metrics.

Positive Factors

AI integration

The 'AI First' strategy, aiming to accelerate AI-ERP integration and prioritize AI-applicable scenarios, should help drive ARPU expansion over the long-run and drive a reacceleration in revenue growth when macro recovers.

Market position

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

Negative Factors

Economic conditions

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

Revenue performance

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

Kingdee International Software Group Co Business Overview & Revenue Model

Company Description

Kingdee International Software Group Co., Ltd. is an investment holding company, which through its subsidiaries engages in the development, manufacturing, and sale of enterprise management software products. It operates its business through the following segments: Enterprise Resources Planning, Cloud Services, and Others. The Enterprise Resources Planning segment comprises of sales and implementation of enterprise management software; provision of other related services; sales of hardware related to enterprise management software arrangements; and sales of middleware software business. The Cloud Services segment provides online service related to cloud service, e-commerce, and other online management services. The Others segment operates investment properties. The company was founded by Shao Chun Xu in 1993 and is headquartered in Shenzhen, 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

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
5.98B	5.68B	4.87B	4.17B	3.36B	3.33B
	Gross Profit
3.87B	3.64B	3.00B	2.63B	2.21B	2.67B
	EBIT
-348.82M	-419.95M	-398.86M	-371.63M	-382.62M	423.79M
	EBITDA
-222.20M	219.84M	-52.82M	61.52M	122.66M	895.57M
	Net Income Common Stockholders
-144.21M	-209.89M	-452.40M	-338.36M	-341.69M	372.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
753.54M	4.05B	2.63B	3.16B	4.98B	3.18B
	Total Assets
2.26B	14.14B	11.73B	11.09B	10.72B	8.42B
	Total Debt
0.00	841.51M	533.89M	79.79M	171.03M	241.25M
	Net Debt
-753.54M	-2.12B	-1.41B	-1.97B	-2.58B	-1.66B
	Total Liabilities
709.93M	5.44B	4.32B	3.28B	2.76B	2.27B
	Stockholders Equity
1.53B	8.60B	7.27B	7.60B	7.79B	5.99B
Cash Flow		Free Cash Flow
323.24M	-243.28M	-513.28M	-111.33M	120.13M	448.17M
	Operating Cash Flow
655.91M	653.32M	374.44M	660.56M	473.02M	962.93M
	Investing Cash Flow
-1.04B	-1.30B	-787.03M	-1.20B	-1.49B	-552.74M
	Financing Cash Flow
572.37M	1.67B	300.52M	-143.84M	1.97B	32.73M

Kingdee International Software Group Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.12
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 12.12 is below the 20-day moving average (MA) of 12.30, below the 50-day MA of 13.65, and above the 200-day MA of 9.32, indicating a neutral trend. The MACD of -0.46 indicates Negative momentum. The RSI at 45.86 is Neutral, neither overbought nor oversold. The STOCH value of 65.40 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	59 Neutral	$9.97B	10.09	-6.54%	3.08%	7.41%	-11.60%
0268	54 Neutral	$42.29B	―	-1.70%	―	8.26%	39.10%

Kingdee International Software Group Co Corporate Events

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.

Kingdee International Schedules Board Meeting for Financial Results and Dividend Discussion

Kingdee International Software Group Co. Ltd has announced a board meeting scheduled for March 17, 2025, to discuss and approve the company’s final results and potential dividend for the year ending December 31, 2024. This meeting is significant as it will provide insights into the company’s financial health and strategic direction, potentially impacting stakeholders and market positioning.

Kingdee International Transitions to New 2025 Share Award Scheme

Kingdee International Software Group Co., Ltd. has announced the termination of its 2015 Share Award Scheme and the adoption of a new 2025 Share Award Scheme. This move aims to continue incentivizing selected participants with awarded shares, supporting the retention and attraction of talent, and furthering business development. The 2025 scheme will be funded solely by existing shares and has a set duration of ten years, with limits on the number of shares that can be awarded. This development is expected to impact the company’s operations by enhancing employee motivation and aligning their interests with company growth.