Remains a key beneficiary of IT investment growth
? Despite short-term uncertainties, Kingdee is expected to remain one of the key
beneficiaries of IT industry development in China.
? We believe that the Company w ill continue to deliver solid grow th, given its share gain
in the large enterprise market and new product launches.
? We factored in higher losses for 2022F and 2023F, given higher expenses, including
sales & marketing and R&D.
? We maintain our ADD rating despite factoring in a higher net loss for 2021F and 2022F.
We set a target price of HK$26.96 based on a 2022F P/S target of 15x. The dow nward
revision is mainly due to the adoption of a low er P/S target (from 25x to 15x).