Kingdee International Software Group Company Limited (HKG:268) Just Released Its Interim Earnings: Here's What Analysts Think

Explore Kingdee International Software Group's Fair Values from the Community and select yours

It's been a sad week for Kingdee International Software Group Company Limited (HKG:268), who've watched their investment drop 16% to HK$15.71 in the week since the company reported its half-year result. It was a pretty bad result overall; while revenues were in line with expectations at CN¥3.2b, statutory losses exploded to CN¥0.028 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the most recent consensus for Kingdee International Software Group from 22 analysts is for revenues of CN¥7.02b in 2025. If met, it would imply a satisfactory 6.7% increase on its revenue over the past 12 months. Kingdee International Software Group is also expected to turn profitable, with statutory earnings of CN¥0.04 per share. Before this earnings report, the analysts had been forecasting revenues of CN¥7.07b and earnings per share (EPS) of CN¥0.04 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for Kingdee International Software Group

There were no changes to revenue or earnings estimates or the price target of HK$18.55, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Kingdee International Software Group at HK$21.71 per share, while the most bearish prices it at HK$14.22. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Kingdee International Software Group'shistorical trends, as the 14% annualised revenue growth to the end of 2025 is roughly in line with the 14% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 21% annually. So it's pretty clear that Kingdee International Software Group is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at HK$18.55, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Kingdee International Software Group going out to 2027, and you can see them free on our platform here..

We also provide an overview of the Kingdee International Software Group Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.