Kingdee International (268.HK): Slower-than-expected growth in Cloud, driven by the second generation of cloud products September 11, 2018

Investment Summary

The revenue growth of traditional ERP was faster-than-expected, due mainly to the strong demand in Kingdee EAS; while the growth in Cloud business was below market expectation, up 25.6% YoY only. However, the group has launched their new product – Kingdee Cloud Cosmic, the first ever PaaS platform for the group. We believe it will bring positive impact for its cloud business in long term. But, because of the depreciation in RMB, we give a target of $8.74, 2.2% lower than previous, initiating “Neutral” recommendation. (Closing price at 7 Sep 2018)

About the author

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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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