Citi: Raises the target price for Kingdee International to HKD 18.3 and holds a positive attitude towards the AI targets for 2030.

On March 19, Jinshi Data reported that Citigroup published a research report expressing a positive attitude towards Kingdee International (00268.HK)'s AI goals for 2030. This includes achieving 20% of revenue structure from AI-related businesses by 2030, maintaining over 20% operating profit margin for Kingdee Cloud, achieving break-even for large enterprise cloud business within the next three years, achieving break-even from 2025, and a long-term goal of generating over 1 million yuan in operating revenue per employee. The company's management expects operating profit to further increase from the current level of 6% in the second half of 2024, anticipating over 1 billion yuan in operating cash flow this year. The firm raised the company's target price from HKD 12.4 to HKD 18.3, maintaining a "Buy" rating. Additionally, the firm lowered this year's revenue and net profit forecasts by 7% and 61%, respectively, to reflect recent weak revenues amid a recovering macro environment, and now expects the annual compound growth rate of cloud service revenue to reach 18% from 2024 to 2027.