Nomura raised Kingdee's target price by 73% to HK$19, maintaining a buy rating.

On February 25, Jinshi data, Nomura released a report, raising the target price of Kingdee International (00268.HK) from 11 Hong Kong dollars to 19 Hong Kong dollars, reflecting a pump space of 38.1%, and maintaining a buy rating. The bank believes that Kingdee's SaaS transformation in the past few years has achieved results, bringing sustainable sources of income and cash flow, and that the company may achieve profitability in the 2025 fiscal year as the main investment cycle has passed. In the long run, DeepSeek may help accelerate the company's AI application development and user adoption, bringing better profit opportunities. At the same time, the bank expects soft IT spending (especially spending by small and medium-sized enterprises) to affect Kingdee's revenue rise in the 2024 fiscal year. The bank currently estimates that Kingdee's revenue in fiscal year 2024 will increase by about 12% annually, cloud revenue will increase by 18% annually, ARRrise will increase by about 24%, and the net loss in 2024 will narrow to RMB 98 million, a decrease of 53% annually. The bank lowered its revenue forecast for fiscal year 2025 by 3%, profit forecast by 12%, raised its revenue forecast for fiscal year 2026 by 0.7%, and raised its profit forecast by 7%.