HK Stock Market Move | KINGDEE INT'L(00268) rose more than 4% during trading, China National Software & Service expects strong prospects for the next three years, and its 25-year industry profitability has improved.

KINGDEE INT'L (00268) rose more than 4% in midday trading, up 4.64% to 8.34 Hong Kong dollars as of press time, with a turnover of 52.5242 million Hong Kong dollars. Citigroup released a research report stating that the valuation of Chinese and Hong Kong technology and communication stocks has been re-evaluated after 2024, driven by policy support and improving profit prospects. Looking ahead to 2025, the focus will be on the "4A" theme and beneficiaries, including Android, automobiles, artificial intelligence (covering computing and monetization), and Apple. The report also pointed out that with the imminent inauguration of President Trump, the market is expected to see a trend of profit taking and risk aversion in the future. At the same time, sentiment towards the monetization of Apple and artificial intelligence may appear in the second quarter of this year with the release of more products. In the software sector, KINGDEE INT'L is recommended. Lion pointed out that China's software spending was stable last year, with strong prospects for the next three years, and believes that related spending should accelerate this year, benefiting from a series of economic stimulus policies implemented in September last year. The bank expects improved profitability for China National Software & Service this year, benefiting from strict cost control implemented last year. The report also mentioned that IDC predicts that artificial intelligence software spending will benefit from rapid growth momentum, with a compound annual growth rate of 29.9% from 2023 to 2028. The bank's top pick stock is KINGDEE INT'L.