HK Stock Market Move | KINGDEE INT'L (00268) rose by over 9%, the company's profit is set to be released soon, under the resonance of numerator and denominator, it is expected to welcome a return to the mean.

KINGDEE INT'L(00268) surged over 9%, as of the deadline, up 9.23% to HKD 6.51, with a turnover of HKD 176 million. On the news front, in the first half of the year, KINGDEE INT'L continued to promote cloud transformation, with cloud service business achieving a year-on-year revenue growth of 17.2% to RMB 2.39 billion, accounting for approximately 83.2% of the group's revenue. China Securities Co., Ltd. stated that as a leader in the domestic industry's cloud transformation, KINGDEE INT'L has accumulated strength and is about to release profits with cloud revenue accounting for over 80%. On one hand, the ERP industry, benefiting from the demand release of the "digitization + localization + AI" triple drive; on the other hand, after years of investment and refinement, the cloud products for small and medium-sized enterprises have gradually entered a stable profit release period, while the large enterprise market continues to break through, with its own advantages gradually becoming prominent. Tianfeng released a research report stating that SaaS assets are more sensitive to the denominator side. With the beginning of an interest rate cut cycle, the company's valuation is expected to continue to benefit. From the numerator side, with the stabilization of macro expectations, previous market concerns, such as business being dragged down by the operations of small and medium-sized enterprises, are expected to be relieved. With resonance from both the numerator and the denominator, the company is expected to see a return to the mean. Considering the company's business resilience, the bank expects the company's revenue to reach close to 15% by 2024. In addition, with a more determined decrease in costs and increase in efficiency, the bank predicts that the mid-term R&D expense ratio will decrease to below 20%.