Investment Rating - The report maintains a "Buy" rating for Kingdee International (0268.HK) [5] Core Views - The company is expected to achieve a revenue growth of 14% in 2024, reaching 6.45 billion RMB, with specific segments like Cangqiong and Xinghan projected to maintain over 40% growth [1] - Operating cash flow is anticipated to exceed 900 million RMB in 2024, with a narrowing loss forecasted to 100 million RMB, indicating a path towards breakeven in 2025 [1] - The company is focusing on subscription-first and AI-first strategies, benefiting from the domestic substitution trend and rapid order growth in its cloud services [5] Summary by Sections Revenue and Growth - The overall revenue for 2024 is projected at 6.45 billion RMB, with Cangqiong and Xinghan expected to grow at over 40% [1] - The company has signed over 250 clients as part of its strategy to replace foreign vendors like SAP and Oracle, with a net renewal rate of 97% for Cangqiong and Xinghan as of Q3 2024 [2] Market Position - Kingdee has maintained its leading position in the mid-sized enterprise market, serving over 42,000 clients and holding the top market share for four consecutive years [3] - The launch of the new flagship version of Kingdee Cloud Xingkong in November 2024 is expected to enhance product offerings and profitability [3] AI Integration - The company has integrated DeepSeek into its SaaS applications, aiming to provide efficient and cost-effective solutions, including private deployment options for clients [4] - The introduction of the Cangqiong APP as an AI management assistant is expected to drive significant revenue growth in AI-related services, projected to reach tens of millions in 2024 [4] Financial Projections - Revenue forecasts for 2024, 2025, and 2026 are set at 6.45 billion, 7.47 billion, and 8.63 billion RMB respectively, with a gradual improvement in profitability expected [6] - The company anticipates a return to profitability with a net profit of 175 million RMB in 2025 and 385 million RMB in 2026 [6]

Group 1 - The company Fenda Technology (002681) announced that several shareholders plan to reduce their holdings by a total of up to 3% of the company's shares [1][2] - Shareholder Yang Minghuan, holding 5.83% of the shares, intends to reduce his stake by up to 1%, while Gree Financial Investment Management Co., Ltd. (Gree Jin Tou) and its concerted action partner plan to reduce their holdings by up to 2% [1][2] - The reduction period for Yang Minghuan is from December 24, 2024, to March 23, 2025, with a maximum of 18.05 million shares to be sold [1][2] Group 2 - Gree Jin Tou holds 9,123,381 shares (5.07% of total shares) and its concerted action partner holds 34,747,100 shares (1.93% of total shares), planning to reduce a combined total of up to 36.01 million shares [2] - The reason for Yang Minghuan's reduction is personal financial needs, while Gree Jin Tou and its partner cite shareholder financial requirements [3] - Fenda Technology specializes in the research, design, production, and sales of consumer electronics and core components, with main products including audio products, smart wearables, smart locks, and health appliances [3]

Core Viewpoint - Kingdee International has launched the first AI-native mobile application, Cangqiong APP, in the domestic enterprise management field, which is expected to lead the Chinese enterprise management software into the AI-native era and accelerate the digital transformation of Chinese enterprises [1] Company Summary - The Cangqiong APP is based on Kingdee's self-developed large model and AI agent technology architecture, enabling natural language interaction to understand user intentions [1] - The application provides financial literacy Q&A, as well as knowledge Q&A and intelligent analysis services related to corporate financial systems, travel policies, and legal policies [1] - It connects with SaaS to cover various enterprise-level AI application scenarios, including financial diagnosis, indicator analysis, and employee services [1] Industry Summary - The launch of the Cangqiong APP represents a significant step towards AI-native solutions in the enterprise management software sector in China [1] - The application aims to provide a new experience of intelligent and convenient management services for enterprise users, potentially transforming the landscape of enterprise management [1]

Investment Rating - The report assigns a "Recommend" rating for the company, marking it as the first coverage [1] Core Views - The company is a leading domestic ERP provider, accelerating its cloud transformation and narrowing losses, with breakeven expected soon [1] - The company's cloud transformation has shown initial results, with revenue growth stabilizing and losses narrowing [9] - The company is leveraging AI and domestic substitution trends to drive ERP upgrades, accelerating the transition to the EBC era [17] - The company's cloud-native products and services are well-positioned to capture new opportunities in overseas markets [34] Company Overview - The company is a leading ERP provider in China, transitioning from financial software to ERP and now to SaaS cloud services [1] - Revenue grew from RMB 1.547 billion in 2014 to RMB 5.679 billion in 2023, with a 9-year CAGR of 15.5% [1] - The company's cloud business accounted for 79.33% of total revenue in 2023, up from 56.72% in 2020 [11] - The company's cloud subscription ARR grew from RMB 630 million in 2019 to RMB 2.86 billion in 2023, with a 5-year CAGR of 45.97% [12] Cloud Transformation - The company's cloud transformation began in 2014, with cloud revenue surpassing traditional ERP revenue in 2020 [11] - Cloud revenue reached RMB 4.505 billion in 2023, accounting for 79.33% of total revenue, with a 7-year CAGR of 35.6% [11] - The company's cloud subscription ARR reached RMB 3.15 billion in H1 2024, up 24.2% YoY [12] - The company's core cloud products, such as Kingdee Cloud·Star and Kingdee Cloud·Star River, have renewal rates above 90% [12] AI and EBC Era - The company is leveraging AI to upgrade traditional ERP systems, accelerating the transition to the EBC era [17] - The company's EBC platform, built on cloud-native and modular architectures, supports enterprise digital transformation [28] - The company's self-developed AI model, Cosmic, enhances ERP systems with better integration, automation, and security [32] Market Opportunities - The company is well-positioned to benefit from domestic substitution trends and the growing demand for industrial software [21] - The company's cloud products are gaining traction in overseas markets, with revenue from international operations growing 8.2% YoY in H1 2024 [43] - The company has established a presence in Southeast Asia, with new offices in Singapore, Vietnam, and Thailand [43] Financial Projections - The company's revenue is expected to grow from RMB 6.642 billion in 2024 to RMB 9.418 billion in 2026, with a CAGR of 18.07% [2] - Net profit is expected to turn positive in 2025, reaching RMB 276 million in 2026, with a YoY growth of 408.9% [2] - Cloud revenue is projected to grow from RMB 5.455 billion in 2024 to RMB 8.218 billion in 2026, with a CAGR of 22.16% [45] Product Portfolio - The company offers a diverse range of cloud products, including Kingdee Cloud·Star River for large enterprises, Kingdee Cloud·Star for mid-sized enterprises, and Kingdee Cloud·Star Light for small businesses [34] - Kingdee Cloud·Star River, the company's flagship product for large enterprises, achieved revenue of RMB 546 million in H1 2024, up 38.9% YoY [35] - Kingdee Cloud·Star, targeting mid-sized enterprises, generated revenue of RMB 1.054 billion in H1 2024, up 14.3% YoY [35] - Kingdee Cloud·Star Light, aimed at small businesses, saw revenue grow 70.8% YoY in H1 2024 [35]

Key Points - **Industry/Company**: Economic International - **Core Viewpoints and Arguments**: The presenter, Du Peng from GF Securities, maintains an "outperform" recommendation for Economic International at the current time node [1]. - **Other Important Content**: N/A

Investment Rating - The report assigns a "Buy" rating to the company with a current price of 8.11 HKD and a target value of 11.88 HKD [1][4]. Core Views - The economic growth outlook has positively changed, with increased policy support for enterprises, which is expected to enhance revenue forecasts and cash flow, positively impacting the company's valuation [2][4]. - The company is actively seizing opportunities in the digital transformation of large enterprises and has made significant progress in securing contracts with major clients [2][4]. - The report maintains an optimistic outlook on the company's prospects based on positive policy adjustments and confidence in the economic fundamentals [2][4]. Summary by Sections Economic Outlook - Recent announcements from the central bank and financial regulatory bodies indicate a package of counter-cyclical policies, including a 20 basis point interest rate cut, which is expected to stimulate economic activity [2]. - The central government's commitment to supporting enterprises and creating a favorable environment for private economic development is highlighted [2]. Revenue Forecasts - The company is projected to achieve revenues of 6.506 billion RMB in 2024, 7.539 billion RMB in 2025, and 8.881 billion RMB in 2026, with year-on-year growth rates of 14.6%, 15.9%, and 17.8% respectively [4][5]. - The company is positioned as a leading player in the domestic cloud ERP market, with a strong competitive product offering and increasing market share [4]. Valuation - The report suggests a valuation of 6x PS for 2024, leading to a target price of approximately 11.88 HKD per share, based on comparable company analysis [4][5]. - The report emphasizes the company's strong financial metrics, including a low accounts receivable to total assets ratio, indicating good financial health compared to peers [4].

港股公司报告 | 公司点评 分子分母端或共振，中期利润率回升能见度有望提升 1、分母侧利好或只是开始，分子侧市场关注的宏观预期正企稳 从分母端看，SaaS 类资产对分母端较为敏感。随着降息周期的开启，公司 估值有望持续受益。从分子端看，随着宏观预期企稳，市场此前的担心如 业务或受中小企业经营情况拖累有望得到缓解。金蝶股价在 2024 年跑输恒 生科技约 45%，分子分母端共振下公司有望迎来均值回归。 2、重申重视公司韧性，强刚需下公司全年需求我们预计稳定 我们持续强调，公司主力产品财务云产品是企业刚需且费用不高（根据公 司公告，星空2023 年Arpu 值在5 万，为A 股上市公司单人平均薪酬的25%）。 根据公司公告，2024 年 H1 公司续费率稳定在 95%。考虑公司业务韧性， 我们预计公司 2024 年收入接近 15%。 3、降本增效更坚决，预计中期研发费用率降至 20%以下 互联网行业的降本增效始于 2021 年年末，财务端在 2022 年下半年开始体 现，如腾讯、阿里。软件行业 24 年年初普遍进行了更坚决更有力的降本增 效，若行业需求稳定预计在 2025 年财务端有望得到体现。考虑金蝶历史研 发 ...

司点评报 外 研 究 | --- | --- | |--------------------------------------|-------------------------------------| | | | | 日期 | 2024-9-13 | | 收盘价（港元） | 5.70 | | 总股本（亿股） | 35.86 | | 流通股本（亿股） | 35.86 | | 归母净资产（亿元） | 79.47 | | 总资产（亿元） | 130.43 | | | | | 每股归母净资产（元） 数据来源： Wind | 2.22 ，兴业证券经济与金融研究院整理 | hongjiajun@xyzq.com.cn SFC：BPL829 SAC：S0190519080002 zhouluyun@xyzq.com.cn SAC：S0190522070002 请注意：周路昀并非香港证券及期货 事务监察委员会的注册持牌人，不可 在香港从事受监管的活动 ＃海e外m研ail究Author＃ 洪嘉骏 | --- | --- | --- | --- | --- | |------------------------------ ...

Share Options and Awards - A total of 529,501,600 share options were granted under the 2005 Scheme, with 323,426,693 options exercised and 206,074,907 options lapsed, resulting in no outstanding options as of June 30, 2024[4]. - The 2015 Scheme has a remaining term of approximately 8 months, with 6,118,500 options outstanding as of June 30, 2024, representing about 7.21% of the total issued shares[5]. - The company may grant an additional 228,409,096 share options under the 2015 Scheme as of June 30, 2024, after accounting for options granted and lapsed[5]. - The exercise price of share options is determined by the Board and cannot be less than the highest of the closing price on the grant date, the average closing price for the preceding five trading days, or the nominal value of the shares[12]. - During the reporting period, a total of 1,707,500 share options were exercised, and 852,500 options lapsed, leaving 6,118,500 options held at the end of the period[15]. - The weighted average closing price prior to the exercise of share options by employees was approximately HK$8.75[15]. - The Share Award Scheme, adopted on December 4, 2015, has a remaining life of approximately one year and four months, aimed at incentivizing key employees and directors[17]. - All award shares granted under the Share Award Scheme relate to existing shares only, with no consideration required for acceptance or vesting[18]. - The Board has discretion in selecting participants for the Share Award Scheme and determining the number of award shares to be awarded[17]. - The terms of the Share Award Scheme do not specify a vesting period or any payment required upon acceptance of an award[19]. - The number of award shares available for grant under the Share Award Scheme decreased from 88,942,233 at the beginning of the Reporting Period to 84,225,153 at the end[26]. - During the Reporting Period, the Company granted a total of 12,821,280 award shares[26]. - The maximum number of shares that may be awarded to a selected participant under the Share Award Scheme in any twelve-month period shall not exceed 1% of the issued share capital, which is 107,830,808 shares as of June 30, 2024[26][29]. - The weighted average fair value of the award shares during the Reporting Period was HKD 7.32 per share[29]. - The weighted average closing price of the Shares immediately before the vesting date was approximately HKD 8.36[29]. - The vesting period for the award shares is four years[29]. - No consideration is required to be paid for the acceptance or vesting of the award shares[29]. - The Company granted 12,231,280 award shares on April 19, 2024, and 440,000 award shares on June 3, 2024[29]. - There were no award shares cancelled during the Reporting Period[32]. - The Board shall not make any further award of shares that will result in exceeding 3% of the issued share capital[26][29]. - During the Reporting Period, the percentage of Shares that may be issued in respect of options and awards under all share schemes is 0% as no options were granted[33]. Financial Performance - For the first half of 2024, Kingdee recorded total revenue of approximately RMB2,870 million, representing an increase of approximately 11.9% compared to the same period in 2023[99]. - Cloud services revenue grew by 17.2% year over year, contributing approximately 83.2% of the Group's total revenue, amounting to approximately RMB2,390 million[98]. - The Annual Recurring Revenue (ARR) for Kingdee Cloud subscription services reached approximately RMB3.15 billion, an increase of 24.2% year over year[98]. - Loss attributable to owners of the Company narrowed to approximately RMB217.9 million, a decrease of 23.2% year over year[100]. - Net cash flow from operating activities was an outflow of approximately RMB166.3 million, slightly improved from RMB168.9 million in the same period last year[101]. - Kingdee maintained the No.1 market share in China for SaaS ERM, Financial Cloud Services, and enterprise EPM according to IDC's 2023 reports[106]. - Kingdee Cloud Cosmic and Kingdee Cloud Constellation recorded Cloud Services revenue of approximately RMB546 million, an increase of approximately 38.9% year over year[110]. - Total signed contract amount for Kingdee's cloud services increased by approximately 63% year over year[110]. - Kingdee reported total revenue of RMB2,870,025,000 for the six months ended June 30, 2024, representing a year-over-year growth of 11.9%[125]. - Revenue from cloud services increased by 17.2% year-over-year to RMB2,389,247,000, accounting for approximately 83.2% of total group revenue[125][126]. - The financial cloud services for small and micro enterprises generated revenue of approximately RMB588 million, increasing by 17.3% year-over-year, with subscription ARR growing by 31%[119][122]. - Kingdee Cloud Galaxy achieved revenue of approximately RMB1,054 million, reflecting a year-over-year increase of 14.3%, with a total customer base exceeding 42,000[115][117]. - The gross profit for the group was approximately RMB1,815,187,000, marking a year-over-year increase of 14.3%, with a gross profit margin of 63.2%[129]. - The revenue from the ERP business and others decreased by approximately 8.8% year-over-year to RMB480,778,000[121][123]. - Kingdee Cloud Stellar's revenue surged by approximately 70.8% year-over-year, with a Net Dollar Retention (NDR) rate of 92%[119][122]. - Selling and marketing expenses increased by 7.2% year-over-year to approximately RMB1,224,514,000, but as a percentage of group revenue, it decreased from 44.5% to 42.7%[130]. - Administrative expenses totaled approximately RMB249,036,000, representing a year-over-year increase of 4.2%, with the percentage of administrative expenses to group revenue decreasing from 9.3% in 1H 2023 to 8.7% in 1H 2024[135]. - Research and development expenses amounted to approximately RMB852,021,000, reflecting a 2.8% year-over-year increase, with the R&D capitalization rate rising to 33.6%[132]. - The Group recorded an operating loss of approximately RMB317,060,000, an improvement of 18.3% compared to the operating loss of approximately RMB388,191,000 in 1H 2023[139]. - The finance income – net amounted to approximately RMB47,722,000, slightly increasing from approximately RMB47,195,000 in the same period of 2023[140]. - The income tax credit for the reporting period was approximately RMB24,707,000, compared to RMB13,562,000 in 1H 2023[141]. - The current loss attributable to owners of the Company was approximately RMB217,851,000, with a net loss margin of approximately 7.6%, improving from 11.1% in 1H 2023[142]. Capital Management and Subscription - The Company completed a Subscription on 14 December 2023, raising gross proceeds of HK$1,561,732,700 and net proceeds of approximately HK$1,560,982,700[41]. - The Subscription Price was set at HK$10.10 per share, with the closing price on 8 December 2023 being HK$10.38[41]. - The intended use of proceeds includes HK$1,248,786,000 (80%) for potential capital market transactions and HK$312,197,000 (20%) for general operation and working capital[42]. - The expected timeline for utilizing unutilized funds includes potential capital market transactions expected to be utilized by December 2025[42]. - The company aims to support its international strategy and optimize its capital structure through the recent Subscription[41]. Shareholder Information - As of June 30, 2024, the total number of issued shares is 3,594,360,271[51]. - Xu Shao Chun holds a total of 703,303,689 shares, representing approximately 19.57% of the total issued shares[51]. - Easy Key Holdings Limited has an interest in 682,198,624 shares, accounting for 18.98% of the total issued shares[60]. - Oriental Tao Limited holds 386,312,000 shares, which is about 10.75% of the total issued shares[60]. - The percentage of shares held by Gary Clark Biddle is 0.03%, with 1,230,000 shares[51]. - Dong Ming Zhu owns 400,000 shares, representing 0.01% of the total issued shares[51]. - The report indicates that no other directors or chief executives had interests in shares or debentures that required disclosure as of June 30, 2024[53]. - The company has not granted any rights or options to acquire shares or debentures to directors during the reporting period[54]. - The total number of shares held by Lin Bo is 2,107,627, which is approximately 0.06% of the total issued shares[51]. - Billion Tao Limited holds 295,886,624 shares, representing 8.23% of the total issued shares of 3,594,360,271 as of June 30, 2024[62]. - BlackRock, Inc. has a total interest in 180,450,107 shares, accounting for 5.02% of the total issued shares[62]. - BlackRock, Inc. holds 6,114,000 short positions, which is 0.17% of the total issued shares[62]. - BlackRock Investment Management Ireland Holdings Unlimited Company has a direct interest of 25,133,855 shares[66]. - The company has not identified any other persons with interests or short positions in the shares as of June 30, 2024[67]. Corporate Governance and Compliance - The company complied with all corporate governance code provisions, except for the roles of chairman and CEO being held by the same individual[82]. - The audit committee reviewed the Group's unaudited consolidated results and confirmed compliance with applicable accounting standards[90]. - The company arranged training for directors and senior management to enhance compliance with listing rules and regulations[83]. - The company confirmed that all directors complied with the code of conduct regarding securities transactions during the reporting period[85]. Financial Position and Risk Management - The Group's total cash and bank deposits decreased to RMB 4,191,310,000 as of June 30, 2024, from RMB 5,692,651,000 as of December 31, 2023, a decline of about 26.4%[170][175]. - The current ratio of current assets over current liabilities was approximately 1.07 as of June 30, 2024, indicating a slight decrease in liquidity compared to previous periods[171]. - The Group's borrowings decreased significantly to RMB 359,600,000 as of June 30, 2024, from RMB 776,900,000 as of December 31, 2023, a reduction of approximately 53.8%[172]. - The gearing ratio as of June 30, 2024, was 62.08%, slightly down from 62.48% as of December 31, 2023, indicating a marginal improvement in financial leverage[169][174]. - The Group held asset management products valued at RMB 85,194,000 as of June 30, 2024, a significant increase from RMB 6,000,000 as of December 31, 2023[170][175]. - The Group's net current assets were approximately RMB 326,904,000 as of June 30, 2024, down from RMB 1,174,033,000 as of December 31, 2023, indicating a decrease of about 72.1%[171]. - The interest rates on loans to third parties remained stable, ranging from 4.28% to 24.00% as of June 30, 2024, consistent with the previous reporting period[162][165]. - The Group has assessed the credit quality of distributors based on their financial position and past experience, setting individual risk limits accordingly[188]. - There is no significant concentration of credit risk in trade receivables from end customers, as the balance is composed of numerous small items spread over a large number of customers[190]. - The Group's investments in debt instruments, including loans to third parties, are considered low risk, with credit ratings monitored for deterioration[190]. - The Group has implemented sophisticated fund management policies to enhance the effectiveness and efficiency of fund management, ensuring financial security and reducing capital costs[194]. - The Group manages idle cash by purchasing wealth management products, which provide higher yields than bank deposits[195]. - A disciplined fund management principle has been established to efficiently manage market risks, supported by annual and monthly funding plans[196]. - The Group has a monthly, quarterly, and annual budget management system approved by the chief financial officer to align capital budget plans with actual business needs[197].

[Table_MainInfo] 公司研究/信息服务/软件 证券研究报告 金蝶国际（0268）公司半年报点评 [Table_InvestInfo] 大型企业业务表现亮眼，苍穹重构升级为 企业级 AI 平台 [Table_Summary] 投资要点： 24H1 收入增速有所放缓，亏损缩窄。公司披露 2024 年半年报。24H1 实现营 业收入 28.70 亿元，同比增长 11.9%；归母净利润亏损 2.18 亿元，同比缩窄 23.2%，主要系大型企业业务的规模效应逐步体现所致。24H1 销售/管理/研发 费用率分别为 42.7%/8.7%/28.1%，同比下降 1.9pct/0.6pct/0.9pct。 云订阅转型持续推进。24H1 云服务业务实现营收 23.9 亿元，同比增长 17.2%， 占集团收入达 83.2%；云订阅服务年经常性收入（ARR）约 31.5 亿元，同比增 长 24.2%；云订阅服务相关的合同负债同比增长 28.2%。 大型企业业务收入及合同金额保持高增长。①大型企业业务：金蝶紧抓大型 企业加速数字化转型及国产化替代的机遇，24H1 金蝶云·苍穹和金蝶云·星瀚 收入 5.46 亿元，同比增长 ...