Kingdee offers management software, online management, consultancy, integration e-commerce server solutions, and informalization services.
Kingdee's main goal in 2020 is to make cloud revenue the company's main revenue. It is expected that by 2020, cloud computing is expected to reach 60% of total revenue.
According to IDC's statistics at the end of 2018, Kingdee still ranks first in China's cloud ERP service market. EO Compay think tank believes that Kingdee's first-mover advantage will still exist in the next 2-3 years, but the future victory will still come from the products and services themselves.
EO Company is concerned that UFIDA and Kingdee's cloud transformation plan has accelerated significantly. Both parties are adding cloud computing to increase the penetration rate of SMEs and leveraging cloud transformation to achieve a comprehensive layout of the Chinese enterprise service software market.
The company's operating income is expected to be CNY 4/4.8/ 5.8 billion in 2020-2022, with earnings per share CNY 0.1 / 0.08 / 0.06
It is predicted that from 2020 to 2021, the company's cloud service revenue will be CNY 1.72 billion to 2.65 billion, with a year-on-year growth rate of 65% and 50%. We will give 15-18 times PS (corresponding to 10-12 times PS in 2021), corresponding to The market value is CNY 36.6 billion to 43 billion, and the market value of traditional ERP business is CNY 4 billion. A reasonable valuation range is HKD 12-14.