[ET Net News Agency, 18 January 2021] Jefferies Research lifted its target price for
Kingdee International Software (00268) to HK$32.63 from HK$30.06 and maintained its "buy"
rating.
The research house said Kingdee's profit warning is unsurprising, with 2H 2020 revenue
guidance 10% below previous guidance, driven by less growth acceleration of its SaaS
product Galaxy, likely due more to a sales and distribution issue instead of demand.
Jefferies forecast Kingdee will still report a loss of Rmb268m in 2021 (the previous
estimate was a loss of Rmb143m). However, it thinks Kingdee will very likely pursue an
A-share IPO on the STAR Board, given the government has been encouraging high-quality
Chinese tech and software companies listed in Hong Kong to do so. (KL)