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268: Rising Margins Will Drive Stronger Profitability Over The Next Year

Update shared on 13 Dec 2025

Fair value Decreased 0.22%
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AnalystConsensusTarget's Fair Value
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1Y
52.0%
7D
3.9%

Narrative Update

Analysts have trimmed their fair value estimate for Kingdee International Software Group slightly, reducing the implied price target from about $18.96 to $18.92. This reflects modestly higher discount rate assumptions and a marginally lower revenue growth outlook, which more than offset a small improvement in projected profit margins and a slightly cheaper future P/E multiple.

Valuation Changes

  • Fair Value Estimate: Edged down slightly from HK$18.96 to HK$18.92, reflecting minor model adjustments.
  • Discount Rate: Risen slightly from 8.66% to about 8.73%, indicating a modestly higher required return.
  • Revenue Growth: Trimmed marginally from 16.25% to about 16.23%, suggesting a slightly more cautious growth outlook.
  • Net Profit Margin: Improved slightly from 12.09% to about 12.10%, reflecting a small uplift in profitability expectations.
  • Future P/E: Eased modestly from 61.36x to about 61.11x, signaling a marginally lower valuation multiple applied to future earnings.

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Disclaimer

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