UBS: Kingdee International (00268) is expected to reach a turning point in profitability. The target price is raised to HKD 21.8, with a reiterated "buy" rating.

According to the Zhidao Finance and Economics APP, UBS released a report stating that based on the Enterprise Value/Sales ratio of 5 to 6 times in 2026 (historical average of 6 to 7 times), the growth acceleration and profit turnaround of Kingdee International (00268) have not been fully reflected in the stock price. UBS adjusted its net profit forecast (83% increase based on the low base in 2025; 13% increase in 2027 based on better assumptions for cloud and subscription income) and, based on an 8 times EV/Sales multiple for Kingdee in 2026 (previously based on a sum-of-parts valuation), raised the target price for Kingdee from HK$11.4 to HK$21.8, reiterating a "buy" rating.