HK Stock Market Move | KINGDEE INT'L (00268) continues to rise by over 4%. Recently announced full access to DeepSeek cloud services, the market demand for service providers is expected to bring broad opportunities.

KINGDEE INT'L (00268) continued to rise by over 4%, with a cumulative increase of over 40% in the past two weeks of trading days. As of the time of publication, it has risen by 4.54% to HK$13.36, with a trading volume of HK$386 million. Goldman Sachs released a research report stating that Kingdee announced the integration of DeepSeek AI basic models on its Kingdee CloudCumulus platform, SaaS applications, and AI agent programs. At the same time, the company also showcased the Galaxy Cloud AI accounting function empowered by the DeepSeek R1 model. The bank believes that artificial intelligence enables companies to more easily gain the favor of new customers, and the company continues to develop new AI application scenarios through cooperation with multiple artificial intelligence basic models. The bank raised the valuation basis of Kingdee from the original forecasted market sales rate of 4.5 times in 2025 to 5.2 times, to reflect the latest market sales rate valuation multiples in the software industry. Minsheng Securities believes that the emergence of DeepSeek has made AI computing power more affordable. With the trend of leveling the playing field between large models by DeepSeek, the decision-making power to win the "victory" falls back to the computing power level. Cloud vendors, with sufficient computing power "ammunition" and a wide user coverage, are expected to benefit rapidly. As more public cloud vendors embrace DeepSeek models, the computing power resources behind them return to the same starting line, transitioning to consider the depth of the computing power pool and the breadth of user coverage. The bank believes that the market demand for cloud service vendors is expected to bring broad opportunities.