Kingdee
1H21 results indicate growth is on track
■ Kingdee reported its 1H21 results; yoy top-line growth and the net loss were higher than we expected.
■ Management shared its ambition to gain market share, especially in the large enterprise market, and build brand confidence in domestic software and cloud services.
■ We maintain our ADD rating despite factoring a higher net loss for 2021F and 2022F. We set a target price of HK$35.71 based on a 2021F P/S target of 25x.