According to a report published by Nomura, Kingdee International's revenue for the first half of the year increased 13.6% year-on-year to 3.6 billion yuan, reversing a loss of 54.5 million yuan in net profit. Cloud service revenue increased 16.6% year over year to 3.1 billion yuan, and subscription revenue increased 20.4% year over year to 2 billion yuan. Annual subscription revenue is approximately $4.4 billion, mainly driven by the growth of Kingdee's AI suite and strong demand from customers in several industries. Gross margin continued to rise, rising 2.1 percentage points to 67.7% year over year. The bank believes that the shift to subscriptions and high-value artificial intelligence products is due to continued structural changes. The bank believes that Kingdee is moving in the right direction to transform into an AI-based company, and AI agents are becoming its new growth engine. In view of the strong growth in the first half of the year and the acceleration of commercialization of AI native products, the bank reiterated its “buy” rating, but lowered the target price by 35.8% from HK$18.49 to HK$11.87.

According to a report published by Nomura, Kingdee International's revenue for the first half of the year increased 13.6% year-on-year to 3.6 billion yuan, reversing a loss of 54.5 million yuan in net profit. Cloud service revenue increased 16.6% year over year to 3.1 billion yuan, and subscription revenue increased 20.4% year over year to 2 billion yuan. Annual subscription revenue is approximately $4.4 billion, mainly driven by the growth of Kingdee's AI suite and strong demand from customers in several industries. Gross margin continued to rise, rising 2.1 percentage points to 67.7% year over year. The bank believes that the shift to subscriptions and high-value artificial intelligence products is due to continued structural changes. The bank believes that Kingdee is moving in the right direction to transform into an AI-based company, and AI agents are becoming its new growth engine. In view of the strong growth in the first half of the year and the acceleration of commercialization of AI native products, the bank reiterated its “buy” rating, but lowered the target price by 35.8% from HK$18.49 to HK$11.87.