Kingdee International (268.HK) Faster-than-expected growth in Cloud, but concern over corporate governance, and expect more details will come March 22, 2019

PSR Recommendation: NEUTRAL Status: Maintained
Target Price: HKDHKD9.21

Investment Summary
The growth of Cloud services regained its momentum and beats our expectation, but that
of traditional ERP just fell below our expectation. We believe the most critical part of
the short selling report is about the transaction with related parties on Cloudhub, but the
Group currently failed to provide further information on it. However, we expect there
will be a further disclosure in the future. We give a target of $9.21, 5.4%, higher than
previous, maintaining an “Neutral” recommendation, with 0.44% potential upside.
(Closing price at 20 Mar 2019)

About the author

Profile photo of Terry Li

Terry Li
Investment Analyst

Graduated from Lingnan University, with Master of Science in International Banking and Finance and Bachelor of Business Administration respectively. Specializes in analyzing company fundamentals and valuation to explore investment opportunities in TMT, Education and Financial industry.

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