SEHK:268

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Kingdee International Software Group

Executive Summary

Kingdee International Software Group Company Limited, an investment holding company, engages in enterprise resource planning business. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.

Share Price & News

How has Kingdee International Software Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 268 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 268's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-1.1%

268

4.1%

HK Software

2.2%

HK Market


1 Year Return

187.8%

268

167.4%

HK Software

7.2%

HK Market

Return vs Industry: 268 exceeded the Hong Kong Software industry which returned 164.3% over the past year.

Return vs Market: 268 exceeded the Hong Kong Market which returned 7.5% over the past year.


Shareholder returns

268IndustryMarket
7 Day-1.1%4.1%2.2%
30 Day-0.7%17.8%8.4%
90 Day22.8%43.7%15.6%
1 Year188.1%187.8%168.6%167.4%11.4%7.2%
3 Year493.3%490.7%224.9%221.3%-3.4%-13.5%
5 Year957.2%952.6%366.2%355.5%65.4%37.4%

Long-Term Price Volatility Vs. Market

How volatile is Kingdee International Software Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kingdee International Software Group undervalued compared to its fair value and its price relative to the market?

1956.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 268 (HK$28) is trading above our estimate of fair value (HK$9.06)

Significantly Below Fair Value: 268 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 268 is poor value based on its PE Ratio (1956.7x) compared to the HK Software industry average (22.2x).

PE vs Market: 268 is poor value based on its PE Ratio (1956.7x) compared to the Hong Kong market (11.5x).


Price to Earnings Growth Ratio

PEG Ratio: 268 is poor value based on its PEG Ratio (39.6x)


Price to Book Ratio

PB vs Industry: 268 is overvalued based on its PB Ratio (13.5x) compared to the HK Software industry average (0.9x).


Next Steps

Future Growth

How is Kingdee International Software Group forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

49.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 268's forecast earnings growth (49.5% per year) is above the savings rate (1.5%).

Earnings vs Market: 268's earnings (49.5% per year) are forecast to grow faster than the Hong Kong market (21% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 268's revenue (18.3% per year) is forecast to grow faster than the Hong Kong market (14.1% per year).

High Growth Revenue: 268's revenue (18.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 268's Return on Equity is forecast to be low in 3 years time (4.9%).


Next Steps

Past Performance

How has Kingdee International Software Group performed over the past 5 years?

7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 268 has a large one-off gain of CN¥105.9M impacting its June 30 2020 financial results.

Growing Profit Margin: 268's current net profit margins (1.2%) are lower than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: 268's earnings have grown by 7.4% per year over the past 5 years.

Accelerating Growth: 268's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 268 had negative earnings growth (-88.9%) over the past year, making it difficult to compare to the Software industry average (-7.4%).


Return on Equity

High ROE: 268's Return on Equity (0.2%) is considered low.


Next Steps

Financial Health

How is Kingdee International Software Group's financial position?


Financial Position Analysis

Short Term Liabilities: 268's short term assets (CN¥4.0B) exceed its short term liabilities (CN¥2.1B).

Long Term Liabilities: 268's short term assets (CN¥4.0B) exceed its long term liabilities (CN¥286.5M).


Debt to Equity History and Analysis

Debt Level: 268's debt to equity ratio (4%) is considered satisfactory.

Reducing Debt: 268's debt to equity ratio has reduced from 59.1% to 4% over the past 5 years.

Debt Coverage: 268's debt is well covered by operating cash flow (295.8%).

Interest Coverage: Insufficient data to determine if 268's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Kingdee International Software Group current dividend yield, its reliability and sustainability?

0.047%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 268's dividend (0.047%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.13%).

High Dividend: 268's dividend (0.047%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.66%).


Stability and Growth of Payments

Stable Dividend: 268 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 268 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 268 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 268's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Robert Xu (57 yo)

12.08yrs

Tenure

CN¥13,598,000

Compensation

Mr. Shao Chun Xu, also known as Robert, has been Chief Executive Officer of Kingdee Software (China) Company Limited since February 02, 2012. Mr. Xu founded Kingdee International Software Group Co. Ltd in ...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD2.10M) is above average for companies of similar size in the Hong Kong market ($USD833.28K).

Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Shao Xu
Founder12.08yrsCN¥13.60m20.07%
CN¥ 19.5b
Bo Lin
CFO, Senior VP & Executive Director4.83yrsCN¥7.56m0.013%
CN¥ 13.0m
Chong Feng Shen
Senior Vice President of Kingdee Chinano datano datano data
Man Ho Siu
Company Secretary1.42yrsno datano data
Rex Wu
General Manager of IR Departmentno datano datano data

5.0yrs

Average Tenure

47yo

Average Age

Experienced Management: 268's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shao Xu
Founder12.08yrsCN¥13.60m20.07%
CN¥ 19.5b
Bo Lin
CFO, Senior VP & Executive Director4.83yrsCN¥7.56m0.013%
CN¥ 13.0m
Gary Clark Biddle
Independent Non-Executive Director16.33yrsCN¥251.00k0.034%
CN¥ 33.1m
Ming Dong
Non-Executive Director8.42yrsCN¥155.00kno data
Po-Shun Wu
Board Observer12.33yrsno datano data
Chia Liu
Independent Non-Executive Director6.83yrsCN¥181.00k0.0058%
CN¥ 5.6m
Bo Wen Zhou
Non-Executive Director0.83yrno datano data
Zheng Ni
Independent Non-Executive Directorno datano datano data

7.6yrs

Average Tenure

59yo

Average Age

Experienced Board: 268's board of directors are considered experienced (7.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 268 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.4%.


Top Shareholders

Company Information

Kingdee International Software Group Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kingdee International Software Group Company Limited
  • Ticker: 268
  • Exchange: SEHK
  • Founded: 1991
  • Industry: Application Software
  • Sector: Software
  • Market Cap: HK$97.065b
  • Shares outstanding: 3.47b
  • Website: https://www.kingdee.com

Number of Employees


Location

  • Kingdee International Software Group Company Limited
  • Kingdee Software Park
  • No.2 Kejinan 12 Road
  • Shenzhen
  • Guangdong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KGDE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2001
268SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2001
KDICDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2001
268SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDFeb 2001
268SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDFeb 2001
KGDE.YOTCPK (Pink Sheets LLC)UNSP ADR EACH REP 100 ORDUSUSDJan 2009
KDIDDB (Deutsche Boerse AG)UNSP ADR EACH REP 100 ORDDEEURJan 2009

Biography

Kingdee International Software Group Company Limited, an investment holding company, engages in enterprise resource planning business. The company operates through ERP Business, Cloud Services Business, an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 10:28
End of Day Share Price2021/01/15 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.