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Bernstein raises Kingdee Int’l Software target to HK$18

Published 18/02/2025, 13:16
Bernstein raises Kingdee Int’l Software target to HK$18
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Tuesday, Bernstein SocGen Group adjusted their outlook on Kingdee International Software (ETR:SOWGn) Group Co. (268:HK) (OTC: KGDEF), increasing the price target to HK$18.00, up from the previous HK$9.50, while keeping an Outperform rating on the company’s shares. The revision follows Kingdee’s recent advances in artificial intelligence (AI) for enterprise resource planning (ERP).

The analyst, Boris Van, noted that Kingdee’s stock has already seen a significant increase, climbing over 60% since the announcement of their new AI initiative, Deepseek. Despite this surge, Bernstein believes that it is still the early stages of Kingdee’s development in this area and anticipates further product advancements that will likely prompt additional upward revisions to their projections.

Deepseek is set to revolutionize AI development within the ERP sector by providing a high-performance, cost-effective model. This innovation allows for small, customized AI models that enhance efficiency, benefiting both software developers and end-users. The integration of AI into ERP systems is seen as a fundamental transformation, promising to automate a multitude of processes and decisions across a broad range of corporate applications.

According to Van, the AI-driven ERP transformation will span multiple years and is expected to automate countless tasks, leading to labor savings and more proactive business insights. The envisioned platform aims to support thousands of use cases, streamlining processes for enterprises of various sizes.

Kingdee’s commitment to AI in ERP is projected to add significant value to the company by not only reducing labor costs but also by providing businesses with deeper and more actionable insights. The increased price target reflects Bernstein’s confidence in Kingdee’s trajectory and the potential impact of its AI developments on the ERP market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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