Furui: KINGDEE INT'L (00268) met income and net profit expectations in the second half of last year. Profit growth is expected to continue this year.

According to a research report released by Credit Suisse, KINGDEE INT'L (00268) has preliminarily announced a 12.5% revenue growth in the second half of 2025, in line with the bank's and market expectations; net profit in the second half of the year increased by 135%, also consistent with Credit Suisse's forecast. After achieving breakeven in the 2025 fiscal year, the bank expects its profits to enter a strong growth trajectory in 2026 and beyond, with a forecasted annual compound growth rate of 70% in net profit over the next three years. Credit Suisse maintains a "buy" rating on the stock with a target price of HK$22.54. The report points out that compared to its main competitor Yonyou Network Technology, Kingdee continues to fight for market share. With the company reaching breakeven in net profit, it is expected that Kingdee's profits will significantly increase from the 2026 fiscal year onwards, driven by rapidly growing SaaS revenue, gross margin expansion, and the scale effects of research and development and sales. Furthermore, the bank believes that Kingdee is less likely to be disrupted by AI technology, due to its deep integration of ERP systems with customer business processes, its access to core data, and the company's active development of its own AI products.