Lyon: Maintaining Kingdee International's (00268) “Outperform the Market” Rating Target Price of HK$12.6, AI Demand Drives Net New ARR to Accelerate Growth

The Zhitong Finance App learned that Lyon released a research report stating that it reaffirmed Kingdee International (00268)'s “outperforming the market” rating, with a target price of HK$12.6. The company's annual recurring revenue (ARR) for subscription services in the third quarter up to the end of September increased 19.3% year over year to RMB 4.604 billion, and the net increase in ARR in the third quarter increased 46.9% year over year, driven by strong demand for Kingdee's AI suite and Lingee (Lingee).

Lyon pointed out that the contract value for Kingdee's AI native products in the first three quarters of 2026 reached 1,002 million yuan, which meant an increase of about 397 million yuan in the third quarter, up from 375 million yuan in the second quarter and 230 million yuan in the first quarter, reflecting that the company's AI native products are bringing in incremental recurring revenue, while the current main subscription service business continues to grow healthily.

In the third quarter, Kingdee signed contracts with CRRC (01766), China Everbright Group, Huazhu Group-S (01179), etc., covering the fields of state-owned enterprises, finance, consumer services and new energy.