Nomura: maintains "buy" rating on KINGDEE INT'L (00268), raises target price to HK$19

Nomura released a research report stating that it has given KINGDEE INT'L (00268) a "buy" rating, with the target price raised from HK$11 to HK$19. It is expected that Kingdee's revenue last year increased by about 12% year-on-year, cloud business revenue increased by 18% year-on-year, and annual recurring revenue (ARR) from Kingdee Cloud subscription services increased by about 24% year-on-year. The revenue forecast for next year has been increased by 0.7% and the profit forecast by 7%. Nomura pointed out that Kingdee's SaaS transformation over the past few years has begun to show results, bringing sustainable sources of revenue and cash flow to the group. As the main investment cycle has passed, it is believed that the company may turn losses into profits this year. In the long run, DeepSeek may help accelerate the company's AI application development, bringing better monetization opportunities.