Damo is optimistic about Kingdee International (00268) and is expected to reach balance of payments early.
The Zhitong Finance App learned that Morgan Stanley released a research report saying that maintaining the Kingdee International (00268) “gain” rating, it is optimistic that the company will reach balance of payments early, and that long-term profit margins have positive prospects, raising its target price from HK$15 to HK$16.
According to the report, the company's internal goal is to achieve balance of payments by the end of this year and make a profit next year. It also believes that gross margin will continue to expand as the subscription revenue portfolio grows and cloud costs are further optimized. It also mentioned that the group will expand overseas this year, focusing on 10 cities including the Greater Bay Area and the Yangtze River Delta. It is expected to enter Europe, the Middle East and North America in the next 3 to 7 years.