Guoxin Securities: Giving Kingdee International (00268) a “superior to the market” rating as a pioneer in cloud-native EBC transformation

The Zhitong Finance App learned that Guoxin Securities released a research report saying that considering Kingdee International (00268) is the world's leading SaaS service provider and that new AI products are progressing smoothly, the company is expected to achieve operating revenue of 69.57/79.28/9.059 billion yuan in 2025/2026/2027, respectively, up 11.2%/14%/14.3% year-on-year, and realized net profit of 0.72/3.69/634 million yuan respectively, corresponding to the current PS of 6.1/5.35/4.69 times, giving 2026 7-8 times PS. The corresponding valuation range was HK$610.68-69.792 billion with a market value of HK$69.792 billion, giving it an “superior to the market” rating.

Guoxin Securities's main views are as follows:

Improve enterprise management solutions and actively promote AI implementation

The company is the world's leading cloud SaaS service provider for enterprise management, and has built digital solutions covering the entire life cycle of enterprises. The main products include the enterprise-level AI platform Kingdee Cloud Sky, and SaaS management Yunxinghan, Starry Sky, and Stars. The company began cloud transformation in 2011, and in 2025H1's cloud service revenue accounted for 83.74% of the company's revenue. With the maturity of the subscription model, the company's revenue continued to rise. The CAGR reached 16.84% in 2020-2024. The gross sales margin and net profit margin have all rebounded in recent years.

Cloud native EBC reconstruction management software, a necessary solution for AI implementation

The company and Gartner jointly proposed that the digital management of enterprises enter the post-ERP era and begin the transformation to cloud-native EBC. EBC re-splits the originally closed functional modules into capability services that can be called by AI, making it a necessary interface layer for enterprise AI implementation. The company is a pioneer in cloud-native EBC transformation, and customer stickiness continues to increase.

Demand for innovation and updates is driving software replacement, and there is still plenty of room for domestic alternatives

Driven by the demand for ERP replacement, central state-owned enterprises led the upward trend in the number of ERP tenders and gradually began localized replacement of ERP systems. Currently, Xinghan and Sky have achieved full-stack compatibility with mainstream domestic innovation ecosystems such as the Chinese Department of Electronics, the Department of Electronics, the Department of Electronics, the Department of Huawei, and the Chinese Academy of Sciences, and have become one of the top choices for domestic central enterprises and the top 500 enterprises.

Smart devices open up AI application scenarios, and enterprise-side penetration accelerates

In recent years, global AI has continued to develop. Large models have reached new heights in knowledge questioning, mathematics, programming, etc., and agent agreements have emerged, providing a foundation for enterprise-level applications. The focus of AI competition has shifted from general capabilities to deep scene cultivation and ecological integration. SaaS companies quickly enter the market based on their own technology or industry know-how, and have a clear ecological advantage. The company's platform fully integrates AI capabilities and signs contracts with leading customers such as Hisense Group and Tongwei Co., Ltd.

Chinese companies are going overseas at an accelerated pace, driving the growth of demand for cross-border ERP

The scale of the global digital economy continues to grow, providing room for growth for Chinese companies to go overseas. As the overseas market expands and downstream demand picks up, the Chinese enterprise-level SaaS market is also expected to usher in continuous growth. The company has formed a full-scenario overseas solution including R&D, sales, supply chain, finance, etc. In 2025H1 Starry Sky signed 259 contracts with overseas customers and overseas local companies, an increase of 114.05% over the previous year.