Kingdee International issued a profit warning, short-term pressure does not change long-term growth
On July 15, $KINGDEE INT'L(00268.HK$ issued a profit warning announcement. 22H1 revenue (median) is expected to be 2.196 billion yuan, up 17.5% YoY. Cloud services revenue is 1.672 billion yuan, up 35% YoY, accounting for about 76%. PATMI is 372 million yuan, with a loss of 124 million yuan, generally in line with expectations.Sinolink Securities said it was bullish on the company's growth and maintained a "buy" rating.
Key Takeaways：
1. Significant growth in recurring subscription revenue (ARR) and a modest increase in expenses
Benefiting from the technological breakthrough of cloud transformation and the good trend of digital industry growth, Kingdee International used the Kingdee Cloud-Canopy platform based on KDDM and multi-dimensional database as well as the large enterprise SaaS management cloud Xing Han to empower the digital transformation of enterprises, with significant growth in revenue in 1H22. Among them, ARR increased 45%-48% compared to 1H 21, with a bright growth rate, and the quality of revenue continued to improve by the company's guidance of a 50% compound growth rate for 21-23 years to advance. The measured total expense amount increased by about 10% YoY, which is expected to be mainly invested in core product research and development such as Cang Qiong.
2. The epidemic affected short-term delivery efficiency and still increased investment in R&D. Losses for the year are expected to narrow compared to FY21
During the accounting period, we invested heavily in the research and development of cloud products, especially Kingdee Cloud-Xinghan and HR SaaS, and delivery was delayed due to the epidemic, resulting in increased losses. With the recovery of the epidemic in the second half of the year, revenue growth is expected to exceed 20% and losses are expected to narrow further.
$KINGDEE INT'L(00268.HK$
$KINGDEE INT'L(00268.HK$
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