[ET Net News Agency, 16 September 2020] Nomura raised its target price for Kingdee
International Software (00268) to HK$22.2 from HK$21.6 and maintained its "buy" rating.
Despite COVID-19 disruptions, the research house thinks Kingdee's leading position in
the cloud ERP market remains intact, with multi-year sustainable growth ahead, thanks to
the rising adoption of cloud services as well as continued domestic substitution.
Moreover, Nomura believes Kingdee is poised to ride the wave of Industrial Internet,
which may enjoy pent-up demand from under-digitalized industrial clients in the next few
years. Thanks to its proactive cloud migration strategy, Kingdee has been able to provide
incumbent industrial customers light-weight, easy-to-extend and pay-as-you-go software
services, which represents the future trend of industrial digitalization.
Nomura cut its 2020-22 sales forecasts by 3-7% to reflect more modest growth in the
post-pandemic era. (KL)