Searching for Oversold Opportunity: China IT Services and Software | Asia Pacific

研报英文原文证据摘录

Searching for Oversold Opportunity: China IT Services and Software | Asia Pacific

Idea

August 3, 2026 01:05 AM GMT

Morgan Stanley Asia Limited+MChina IT Services and Software | Asia Pacific Yang Liu

Equity Analyst

Searching for Oversold Yang.Liu@morganstanley.comLydia Lin +852 2239-1911

Lydia.Lin@morganstanley.com +852 2239-1572

Opportunity Tom Tang

Tom.Tang@morganstanley.com +852 3963-1860

We identify China three software players with revenue

acceleration momentum (easing the AI disruption and macro

headwind concerns) and attractive valuations (safety margins

due to low visibility of the end-game): Kingdee (upgrade to OW),

Meitu and Beisen. Greater China IT Services and Software

Asia Pacific

The AI disruption debate continues and software stocks can only mitigate this by Industry View In-Line

demonstrating consistent earnings delivery. Investors are also becoming more What’s Changed

demanding on software stocks' valuation safety margins, reflecting the general low Kingdee International

Software Group (0268.HK) From To

confidence in terminal values. After significant YTD share price declines and with Rating Equal-weight Overweight

more visibility into 1H26 earnings, we see oversold opportunities in selective Price Target HK$11.50 HK$11.30

software names during an industry rotation. Yonyou Network Technology

Co Ltd (600588.SS) From To

• Earnings delivery: Software and IT services companies are enjoying tailwinds Price Target Rmb6.90 Rmb5.40

from underlying AI technology improvements, and incumbents are well

Kingsoft Corp Ltd (3888.HK) From To

positioned to become the gateway for enterprise/consumer AI adoption in Price Target HK$28.00 HK$30.00

the near term. Those who are swift to embrace AI – upgrading product or Beisen Holding Limited