News Alert: Cloud services revenue grew by 30%-40% y-o-y in 1H22, in line with market expectations
- Total revenue increased by 15%-20% y-o-y in 1H22
- Cloud services revenue grew by 30%-40% y-o-y in 1H22, in line with market expectations
- Net loss expanded 40%-60% in 1H22 due to increasing R&D and the impact from COVID-19 resurgence
- Expect revenue growth to accelerate in 2H22 with the resumption of economic activities
What’s New
– Kingdee (268 HK) announced its 1H22 preliminary results on 15 Jul 2022 after market close.
– Total revenue grew by 15%-20% y-o-y to Rmb2,153m-Rmb2,247m.
– Cloud service revenue increased by 30%-40% y-o-y to Rmb1,610m-Rmb1,734m, accounting for 72%-81% of total revenue. Annual recurring revenue (ARR) increased by 45%-48%.
– Net loss expanded 40%-60% y-o-y to Rmb347m-Rmb397m, due to increasing R&D in cloud products and the adverse impact of COVID-19 resurgence.
Our View:
– We expect neutral share price reaction as the cloud services revenue growth in 1H22 is in line with market expectations.
– We expect revenue growth to accelerate in 2H22 with the resumption of economic activities in China.
– We currently rate BUY on the counter; TP of HK$29.1.
