HK Stock Market Move | KINGDEE INT'L (00268) soars more than 20%, Qatar company recently established, DS expected to accelerate company's AI application development.

KINGDEE INT'L (00268) soared more than 20% in early trading, rising by 20.57% to HK$17 as of the time of reporting, with a trading volume of HK$1.671 billion. On the news front, on February 25, KINGDEE INT'L announced the establishment of a company in Qatar, entering the Middle East market. It is reported that in December 2023, KINGDEE INT'L and the Qatar Investment Authority (QIA) announced an agreement, with QIA investing approximately $200 million. This strategic investment not only reflects QIA's recognition of Kingdee as a leader and key driver in the cloud transformation of Chinese enterprises, but also aligns with its strategic goal of investing in leading companies and technologies in the global digital trend. In addition, Nomura released a research report stating that Kingdee's SaaS transformation in recent years has begun to show results, bringing sustainable sources of income 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. Foray believes that the success of DeepSeek could bring new opportunities for further growth in China National Software & Service Market, with KINGDEE INT'L being the preferred choice.