HK Stock Market Move | KINGDEE INT'L (00268) up over 8% set up Qatar company to expand the Middle East region map DeepSeek or accelerate company AI application development.

KINGDEE INT'L (00268) rose more than 8%, as of the time of writing, up 8.63% to HK$13.84 with a turnover of HK$ 435 million. On the news front, KINGDEE INT'L recently announced the establishment of a company in Qatar, entering the Middle East market. Since Qatar Investment Authority invested approximately US$200 million in Kingdee in December 2023, cooperation between Kingdee and Qatar has continued to deepen. Kingdee plans to use Qatar as a bridgehead to expand its business in the Middle East and North Africa markets, helping local enterprises with digital transformation to achieve Qatar's national vision for 2030. In addition, on March 1, the 2025 Kingdee Group Global Ecological Partners Conference was held in Xi'an. At the conference, Kingdee announced its 2025 international ecological strategy, including building competitive international products and collaborating with ISV partners to create global industry and multi-domain product solutions. A recent Nomura research report pointed out that Kingdee's SaaS transformation in the past few years has started to show results, bringing sustainable sources of income and cash flow to the group. With the main investment cycles behind it, the company is expected to turn a profit this year. In the long term, DeepSeek may help accelerate the development of the company's AI applications, providing better monetization opportunities. The firm gave KINGDEE INT'L a "buy" rating, raising its target price from HK$11 to HK$19. It is expected that Kingdee's revenue will increase by around 12% year-on-year last year, cloud business revenue by 18%, and Kingdee Cloud subscription service annual recurring revenue (ARR) by about 24% year-on-year, with revenue forecasts for the next year increased by 0.7% and earnings forecasts by 7%.