Report published September 30, 2026
Goldman Sachs Equity Research: Kingdee (0268.HK) – AI Native Products with Lingee AI OS as Key Growth Drivers; Continuous Improving Profitability Ahead
Goldman Sachs · September 30, 2026
Goldman Sachs reiterates a Neutral rating on Kingdee with a revised 12-month DCF target price of HK$10.50 (from HK$11.10). While 1H26 net income beat estimates driven by operating leverage and rapid AI-native product contract growth (+159% YoY), lower large-enterprise revenue and higher R&D spending led to modest forward earnings cuts.
Read the remaining 4 pages
Finvaulta summarizes Goldman Sachs's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
Key Takeaways
- 1.Maintained Neutral rating on Kingdee while trimming the 12-month DCF-based target price from HK$11.10 to HK$10.50.
- 2.AI-native products delivered contract value growth of 159% YoY (47% HoH), with management targeting over Rmb1bn in revenue in 2026E.
- 3.1H26 net income of Rmb54m (+35% YoY) beat expectations and guidance due to operating leverage and a better OpEx ratio, while revenue grew 14% YoY to Rmb3,625m.
Table of Contents
- Lingee and AI suite as key AI native products
- Earnings revision
- Valuation
- Price Target Risks and Methodology - Kingdee
Report data
Exhibit 2: Earnings revision — as of September 29, 2026.
| Metric | Estimate | Context |
|---|---|---|
| 1H26 Revenue | 3,625 RMB million | Reported 1H26 revenue in line with guidance and estimates, driven by SMB enterprise growth. |
| 1H26 Net Income | 54 RMB million | 1H26 net income was 35% higher than GS estimates and 20% above midpoint guidance. |
| AI-Native Product Contract Value Growth | 159% | Growth in contract value delivered by AI-native products including Lingee and Kingdee AI Suite. |
| 12-month Price Target | 10.50 HKD | Lowered from HK$11.10 based on rolled-over DCF methodology. |
| WACC Assumption | 12.1% | Cost of equity of 12.1% based on 1.4 beta, 3.0% risk-free rate, and 6.5% market risk premium. |
Access the full report
And others from the leading tier 1 banks.
Free account: read previews and a daily allowance of full reports. Pro removes the daily limit.
Authors / Editors
Related Reports
Asia-Pacific Weekly Kickstart: MXAPJ Fell Another 1%, as Higher Oil Prices and US Rates Continued to Drive Outflows and Pressure
October 10, 2026
China Weekly Kickstart: MXCN Gained 1% While A-Shares Lost 1%
October 10, 2026
TOPIX Next-Generation Review: Broad Reshuffle, Significant Flow Implications
October 9, 2026
China Property Weekly Wrap: Week 40 Wrap - Primary Volume Inspiring Entering the "Silver" October
October 9, 2026
Golden Week Wrap-Up: Muted Domestic but Solid Outbound Travel Demand
October 9, 2026