CLSA keeps Buy on Kingdee stock as profit returns

Published on 10/07/2026 at 06:53 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

First-half revenue reached RMB 3.63 billion, up 13.60 percent year over year. CLSA set a HKD 12.60 target on Kingdee stock.

Kingdee, KYG525681477, Illustration mit AI erstellt.

CLSA maintained a Buy rating on Kingdee stock on September 9, 2026, and set a HKD 12.60 price target, according to Markets Insider. The analyst action followed Kingdee's return to profit in the first half of 2026.

Profit returns in first half

Kingdee reported RMB 3.63 billion in revenue for the six months ended June 30, 2026, up 13.60 percent from the same period in 2025, according to its investor-relations page dated August 11, 2026. The company attributed the expansion to cloud services and AI-native products.

AI-native product revenue rose 189.00 percent year over year to RMB 296.0 million in the first half of 2026. Cloud-services revenue reached RMB 3.12 billion, up 16.60 percent, and subscription revenue increased 20.40 percent to RMB 2.03 billion.

Margins and recurring revenue improve

Gross profit increased 17.20 percent to RMB 2.46 billion, lifting gross margin to 67.70 percent in the first half of 2026. Annual recurring revenue rose 18.30 percent to RMB 4.41 billion, giving investors a clearer operating measure than the headline revenue number alone.

Profit attributable to owners reached RMB 54.0 million, compared with a loss in the prior-year period. Adjusted profit was RMB 116.0 million, while operating cash inflow reached RMB 142.0 million, according to Kingdee.

Analyst target stays above Hong Kong quote

CLSA's HKD 12.60 target stands above the HKD 7.86 closing price cited in its September 9 note, while DBS retained a Buy rating and a HKD 14.30 target in a September 7 report, according to Markets Insider. The differing targets show that valuation expectations remain a central issue alongside the improving operating figures.

Kingdee stock remains below yearly high

The Lang & Schwarz prior close for Kingdee was EUR 0.83 on October 5, 2026. On the Hong Kong Stock Exchange, the finance quote showed HKD 7.30 on October 7, 2026 at 11:59 p.m. HKT, against a 52-week range of HKD 5.63 to HKD 17.69 and market capitalization of HKD 25.5 billion.

The further course of trading is shown by the continuously updated real-time quote of Kingdee stock.