Lyon: Credit Suisse raises the target price of Kingdee International to 17.6 Hong Kong dollars and maintains an "outperform" rating.

Lyon published a research report stating that the first half of the year earnings of Kingdee International met market expectations, mainly driven by the growth of cloud subscription revenue. Although the annual recurring revenue of cloud subscription services is slightly lower than market expectations, the growth of subscription-related liabilities is stable, showing that its subscription model development is stable, and gross profit margin has also increased due to business structure improvements. Lyon raised Kingdee's target price from HK$15.4 to HK$17.6, maintaining an "outperform" rating; It lowered revenue forecasts for 2025 to 2027 by 1.3%, 3.2%, and 5.2%, while keeping net profit margin forecasts basically unchanged.