Goldman Sachs: Raise Kingdee International's target price to 18.87 Hong Kong dollars, slightly increase profit forecasts for the next two years by 1%.

Goldman Sachs released a research report stating that it is expected that the second-quarter revenue growth of the nine software companies covered will show a quarterly improvement, mainly driven by the recovery in customer order momentum. However, IT spending in some industries such as construction still faces short-term pressure. The bank expects that the second-quarter profits of software companies will still be weak, but profitability may improve in the second half of the year as operational efficiency improves and staff optimization measures are implemented. In terms of the Chinese ERP sector, Goldman Sachs believes that Kingdee International's first-half revenue is expected to increase by 13% year-on-year to 3.2 billion yuan, mainly driven by improvements in spending by large enterprise clients. The bank believes that productivity improvements will drive profit growth. Goldman Sachs maintains a "buy" rating on Kingdee with a target price raised from 17.81 Hong Kong dollars to 18.87 Hong Kong dollars; it has raised profit forecasts for 2026 and 2027 by approximately 1% to reflect growth in revenue from cloud services for large enterprises and a decrease in operating expenses ratio due to improved operational efficiency. This year's forecast remains unchanged.