Investment Rating - The report maintains a "Buy" rating for Kingdee International (0268.HK) [1] Core Views - The company reported a revenue of 2.87 billion RMB for the first half of 2024, representing a year-on-year growth of 11.9%, while the net loss narrowed to 220 million RMB, a decrease of 23.2% compared to the previous year [2] - The cloud transformation is progressing steadily, with cloud revenue reaching 2.39 billion RMB, up 17.2% year-on-year, accounting for 83.2% of total revenue [2] - The company is expected to maintain a compound annual growth rate (CAGR) of 16.6% in revenue from 2024 to 2026, driven by its strong position in the ERP market and continuous cloud transformation [3] Summary by Sections Financial Performance - In H1 2024, the company achieved a revenue of 2.87 billion RMB, with a year-on-year growth of 11.9% and a net loss of 220 million RMB, which is a significant improvement from a loss of 280 million RMB in H1 2023 [2] - The annual recurring revenue (ARR) reached 3.15 billion RMB, growing by 24.2% year-on-year, with subscription contract liabilities increasing by 28.2% to 3.18 billion RMB [2] Market Position - Kingdee maintains a strong leadership position in the medium-sized enterprise market, with a revenue of 1.05 billion RMB from its "Starry Sky" product line, reflecting a year-on-year growth of 14.3% [2] - The company has signed contracts with 611 national and provincial specialized enterprises, further enhancing its market share [2] Product Development - The "Cang Qiong Xing Han" product line generated 550 million RMB in revenue, marking a year-on-year increase of 38.9%, with a renewal rate of 97% [2] - The launch of the AI management assistant "Cosmic" is expected to enhance the company's offerings in various fields, including finance and human resources [2] Future Outlook - The company is projected to achieve revenues of 6.55 billion RMB, 7.64 billion RMB, and 9.01 billion RMB for the years 2024, 2025, and 2026, respectively, with corresponding net profits of -70 million RMB, 190 million RMB, and 360 million RMB [14] - The report emphasizes the company's commitment to cloud transformation and building a robust ecosystem to support stable growth [15]
金蝶国际：2024年半年报点评：大型企业订单高增，亏损持续收窄