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2025-07-29 13:03:16
[Goldman Sachs: Raise Kingdee International's target price to HK$18.87, slightly raise earnings forecasts for the next two years by 1% each] Goldman Sachs published a research report stating that it expects the second-quarter revenue growth of the nine software companies covered to improve quarter-on-quarter, mainly driven by the recovery of customer order momentum, but IT spending in some industries such as construction is still facing short-term pressure. The bank expects software companies to continue to have weak earnings in the second quarter, and earnings growth may improve in the second half of the year with improved operating efficiency and personnel optimization. In terms of the Chinese ERP sector, Goldman Sachs believes that Kingdee International's revenue is expected to grow by 13% year-on-year to 3.2 billion yuan in the first half of the year, mainly driven by improved spending by large corporate customers, and believes that increased per capita productivity will drive earnings improvement. Goldman Sachs maintains Kingdee's "buy" rating, and the target price is raised from HK$17.81 to HK$18.87; the earnings forecast for 2026 and 2027 is raised by about 1% to reflect the slight reduction in the operating expense ratio driven by the growth of large enterprise cloud service revenue and improved operating efficiency, and the forecast for this year remains unchanged.
