[ET Net News Agency, 1 March 2021] Nomura lifted its target price for Kingdee
International Software (00268) to HK$32.5 from HK$22.2 and maintained its "buy" rating.
The research house said Kingdee's share price has corrected over 20% after Chinese New
Year (versus the Hang Seng Index's fall of 4%), and the valuation is now attractive.
Nomura believes Kingdee's track record in executing cloud migration strategies will
continue to enable it to tap industrial digitalization and domestic substitution business
in the long run.
It revised its FY2020-21 earnings forecasts to a net loss of CNY299mn/CNY92mn from
CNY40mn/CNY188mn net profit, respectively, to reflect the impact from accelerated cloud
migration. (KL)