[ET Net News Agency, 3 December 2019] Nomura raised its target price for Kingdee
International Software (00268) to HK$9.6 from HK$8.7 and maintained its "buy" rating.
The research house believes Kingdee is on track to accelerate its cloud migration,
thanks to continuous investment in the cloud platform over the past few years. As Kingdee
Galaxy (an SME segment product) still has strong client traction and Cosmic (a large
enterprises product) is gaining momentum, the company is confident that 60% of its revenue
will be from the cloud business in 2020.
Meanwhile, as Kingdee shifts further away from its onsite software model to cloud, the
bottom line could come under pressure in the short term, Nomura said. It cut its 2019-21
earnings forecasts by 25-51% to reflect the potential earnings pressure during this
transformation, but Nomura believes the company will enjoy sustainable growth in cloud in
the longer term. (KL)
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00268 KINGDEE INT'L
Nominal 
8.370 +0.500 (+6.353%) Others
03/12/2019 10:28
{I-bank focus}Nomura raises Kingdee (00268) to HK$9.6
| Remark: | Real time quote last updated: 26/04/2024 16:49 |
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