Kingdee International Software (0268.HK): IH26 Results Quick Take: Net Profit Above Mid-pt of Guidance

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11 Aug 2026 06:53:08 ET │ 11 pages

Kingdee International Software (0268.HK)

1H26 Results Quick Take: Net Profit Above Mid-pt of Guidance

CITI'S TAKE

Kingdee reported 1H26 result, with revenue of RMB3,625mn, up 14% YoY,

largely inline. Gross profit reached RMB2,456mn, up 17% YoY, beating

consensus by 3% and expanding gross margin to 67.7% — 1.5ppts ahead

of the 66.3% consensus. Operating profit swung to RMB29mn from a loss

of RMB154mn in 1H25, marking a meaningful profitability inflection. Net

income came in at Rmb54mn, at the high-end of the company prior

guidance of Rmb40-60mn. Net cash inflow generated from operating

activities turns positive to Rmb142mn. Company will hold investors

briefing on 12 Aug 2026 10am, key focus on Lingee AI revenue ramp up and

cost control efficiency.

Buy

Price (11 Aug 26 16:10)

HK$8.99

Target price

HK$13.70

Expected share price return

52.4%

Expected dividend yield

0.0%

Expected total return

52.4%

Market Cap

HK$31,596M

US$4,027M

What’s More

Kyna WongAC

Subscription revenue grew 20% YoY to RMB2,028mn, with subscription ARR

reaching RMB4,413mn (+18% YoY). AI-native products (Lingee + Kingdee AI Suite)

deliver RMB296mn in revenue (+189% YoY) with contract value surging 159% to

RMB605mn, on track with the AI revenue target of Rmb1bn for full-year 2026. The

Lingee Enterprise Agent OS, launched on 20 May, has signed 26 customers with 40+

agents deployed across finance, supply chain, and manufacturing.

Yiming Li, CFA

Across client segments, large enterprises are shifting from standalone ERP to

integrated Digital Resource Management Platforms (DRP); medium enterprises in

high-growth sectors (semiconductors, new energy, auto) drove steady subscription

growth (+10% YoY); while the small-and-micro tier was the fastest growing at +15%

YoY revenue, aided by AI-enabled delivery efficiency improving over 50%.

On globalisation, Kingdee signed ~140 international enterprise customers and

established local service networks across Malaysia, Thailand, Vietnam, Indonesia,

Singapore, and Qatar. Company continued to advance its globalisation strategy of

“Chinese enterprises going global + overseas native customers”.