Understanding the Market | KINGDEE INT'L currently up over 3% as the company adjusts its development service fees, expecting to drive a 3% to 5% growth in subscription ARR next year
KINGDEE INT'L's stock price rose by 3.46%, closing at HKD 15.54, with a trading volume of HKD 183 million. The company will start charging additional service fees to cloud customers from July, which is expected to drive a 3% to 5% growth in subscription ARR next year. Daiwa and Goldman Sachs are optimistic about KINGDEE INT'L's AI products and their market prospects, predicting that AI will contribute approximately 20% of the company's total revenue by 2030
According to Zhitong Finance APP, KINGDEE INT'L (00268) is currently up over 3%, with a rise of 3.46% as of the time of writing, priced at HKD 15.54, with a transaction volume of HKD 183 million.
In terms of news, KINGDEE INT'L will start charging cloud customers who require high-end features such as work order support services an additional service fee equivalent to 15% of the subscription fee starting in July. Daiwa expects this will drive a 3% to 5% increase in subscription ARR next year. KINGDEE recently launched an AI agent product, with pricing yet to be determined. Daiwa estimates it may adopt a usage-based charging model, expecting the product to be monetized in phases, which will drive an increase in cloud service ARPU next year.
Goldman Sachs stated that with the release of the Cangqiong Intelligent Agent 2.0 platform, it reaffirms its buy rating on KINGDEE INT'L. This platform features capabilities covering finance, business travel, recruitment, and is driven by multiple AI foundational models. The firm expects the company to continue expanding its intelligent agents into areas such as AI sales, AI operations, and AI decision-making, enabling AI agents to provide customized experiences based on different user behaviors. With its customer base accumulated through Cangqiong and Xinghan Cloud, the company aims for AI to contribute approximately 20% of total revenue by 2030. Along with improvements in employee efficiency and profitability, the firm is optimistic about the incremental generative AI revenue that KINGDEE can generate as a leader in local enterprise services
