Bank of America Securities: KINGDEE INT'L (00268) continues to improve profitability and maintains a "buy" rating.

Bank of America Securities released a research report stating that it maintains a "buy" rating for KINGDEE INT'L (00268), with a target price of 13.9 Hong Kong dollars unchanged. KINGDEE INT'L announced earnings growth in the first half of this year, with revenue expected to increase by 13% to 14% year-on-year to 36.1 billion to 36.4 billion RMB, in line with market and the bank's expectations. The bank believes that the revenue growth has accelerated compared to the 2025 fiscal year, driven mainly by the rapid growth of subscription revenue and strong demand for AI native products. In terms of profitability, Kingdee expects net profit in the first half of the year to reach 40 to 60 million RMB, while adjusted net profit under international financial reporting standards is expected to be 105 to 125 million RMB. The bank estimates that the increase in the proportion of subscription revenue and the improvement in operational efficiency driven by AI will lead to an annual year-on-year increase of approximately 2 percentage points in gross profit margin in the medium term.