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1、 See the last page for disclaimer Page Equity Research Equity Research Report Company Report 股股票票研研究究 公公司司报报告告 证证券券研研究究报报告告 计算机行业计算机行业 金蝶国际金蝶国际 Computer Sector Kingdee International(00268 HK)Company Report:Kingdee International(00268 HK)Daniel Tao 陶选(86755)2397 6885 公司报告：金蝶国际(00268 HK).hk 11 Novembe

2、r 2022 Fueling Digitalization for Enterprises;Initiate With Buy 助力企业数字化转型，首予“买入”评级 We initiate Kingdee International(Kingdee,or the Company)with a rating of Buy and a target price of HK$20.20,corresponding to 2022-2024 PSR of 12.0 x,9.6x and 7.7x,respectively.Demand for digital transformation of ent

3、erprises may exceed market expectations.The development of cloud computing has greatly simplified deployment of enterprise management software.Diversified and modular products provide more choices for SMEs.Companies that previously thought that management software was complex and difficult to deploy

4、 may begin to pay more attention to this IT investment.We expect the Company,with mature products and unique experience,to show fast revenue growth in the state-owned firms market.Kingdee can provide strong products with the industrys first cloud native PaaS platform,and the Company has increased it

5、s experience in serving super-large companies by developing HR software in collaboration with Huawei,which has a strong benchmarking effect in the industry.Catalysts:More policies supporting ITAI;improved Covid pandemic situation improving delivery logistics.Key Risks:1)Industry competition may inte

6、nsify;2)cloud business R&D may not be as expected;3)localization substitution may not be as expected;4)downstream customers may reduce IT expenditure;5)progress of ITAI may not be as expected.我们首次覆盖我们首次覆盖金蝶国际金蝶国际（“金蝶（“金蝶”或“公司或“公司”）并给予）并给予 20.20 港港元的目标价元的目标价以及以及“买入“买入”的投资评级的投资评级，目标价分别对应 2022-2024 年市销

7、率 12.0 倍、9.6 倍和 7.7 倍。企业数字化转型需求或企业数字化转型需求或将超将超市场市场预期预期。云计算发展极大简化了企业管理软件的部署。多样化和模块化的产品为中小企业提供了更多的选择。以前认为管理软件复杂和部署麻烦的企业或将开始重视此 IT 投入。我我们预期们预期公司公司有望有望凭借凭借成熟成熟的的产品产品和独特和独特的的经验在国企市场经验在国企市场实现收入实现收入的的快速增长快速增长。金蝶凭借业内首个云原生 PaaS 平台可以提供更好的产品性能，并且公司通过与华为合作开发HR 系统增加了服务超大型公司的经验，在业内具有强烈的标杆效应。催化剂催化剂：更多支持行业信创的政策推出；疫

8、情好转使交付流程更加顺畅。主要风险主要风险：1）行业竞争加剧；2）云服务研发不及预期；3）国产化替代推进不及预期；4）下游客户缩减 IT 支出；5）信创落地不及预期。Rating:Buy Initial 评级：买入买入 (首次覆盖)6-18m TP 目标价:HK$20.20 Revised from 原目标价:Share price 股价:HK$12.900 Stock performance 股价表现 (70.0)(60.0)(50.0)(40.0)(30.0)(20.0)(10.0)0.010.020.0Nov-21Feb-22May-22Aug-22Oct-22%of returnHSI

9、 IndexKingdee International Change in Share Price 股价变动 1 M 1 个月 3 M 3 个月 1 y 1 年 Abs.%绝对变动%48.5-18.6-44.9 Rel.%to HS Index 相对恒指变动%47.8-3.0-12.1 Avg.Share price(HK$)平均股价（港元）11.4 12.9 17.4 Source:Bloomberg,Guotai Junan International.Table_Year End Turnover Net Profit EPS EPS PER BPS PBR DPS yield ROE

10、年结 收入 股东净利 每股净利 每股净利变动 市盈率 每股净资产 市净率 每股股息 股息率 净资产收益率 12/31(RMB m)(RMB m)(RMB)(%)(x)(RMB)(x)(RMB)(%)(%)2020A 3,356(335)(0.101)(187.8)(107.5)2.188 5.0 0.000 0.0(4.9)2021A 4,174(302)(0.092)n.a.(114.3)2.247 4.7 0.000 0.0(3.9)2022F 5,036(377)(0.115)n.a.(102.3)2.249 5.2 0.000 0.0(4.9)2023F 6,296(208)(0.06

11、4)n.a.(183.8)2.379 4.9 0.000 0.0(2.6)2024F 7,864(30)(0.009)n.a.(1,307.2)2.595 4.5 0.000 0.0(0.3)Shares in issue(m)总股数(m)3,475.1 Major shareholder 大股东 Xu Shaochun 20.2%Market cap.(HK$m)市值(HK$m)44,828.8 Free float(%)自由流通比率(%)79.8 3 month average vol.3 个月平均成交股数(000)18,009.5 FY22 Net gearing(%)FY22 净负债/

12、股东资金(%)Net Cash 52 Weeks high/low(HK$)52 周高/低(HK$)28.300/8.870 FY22 Est.NAV(HK$)FY22 每股估值（港元）24.2 Source:the Company,Guotai Junan International.See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kingdee International(00268 HK)Company Report CO

13、NTENTS 1.Investment Thesis.3 2.Earnings Forecasts and Valuation.4 2.1 Earnings Forecasts.4 2.2 Valuation.6 3.Looking Back on SAPs History,Understanding Customers Pain Points Is Core.8 3.1 ERP：The Nerve Center of Enterprise Operation.8 3.2 Understanding customers business and high quality M&A enable

14、SAP to be the top.9 3.3 Shift in growth slowed down revenue;cloud operation data still promising.12 4.Kingdee:Chinas ERP Trailblazer.16 4.1 Fast transformation,opening a new era of enterprise business capability(EBC).16 4.2 Comprehensive product mix enables the Company to serve customers of differen

15、t size.18 4.3 Continuous development of cloud business and rapid growth of subscription ARR.22 4.4 Digitalization demand is still booming,ITAI offers catalysts in the high-end market.25 5.Key Risks.27 Financial Statements and Ratios.28 OYdYkWjWcVlVqQ2WmVsV7NaObRpNmMtRoMlOrQrQjMqRtP8OqQuMwMrNwOvPoOtP

16、 See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kingdee International(00268 HK)Company Report 1.Investment Thesis Kingdee International(Kingdee,or the Company)is the leading supplier of enterprise management software in China and has seize

17、d many historic opportunities.Kingdee was an early entrant in enterprise management software and has accumulated experience.The Company has strong influence in the SME(small and medium-sized enterprise)market with its excellent software in the fields of human capital,finance and taxation.When cloud

18、computing first emerged in China,the Companys management team were keenly aware of the opportunities and quickly decided to transform to cloud computing;they were among the first in the industry.With rising awareness of national information security,the Company grasped the localization trend and sta

19、rted to provide services for large state-owned enterprises,opening up new growth space.The development of cloud computing is still booming,and demand for digitalization from enterprises may exceed market expectations.Enterprises will experience a gradual decline in growth when they are growing at su

20、stained high speed.At this time,the development logic switches from high-speed growth to quality growth,and enterprise management software is emblematic of enterprises seeking efficiency from management.As enterprises are facing increasingly complex business conditions,in addition to pressure to red

21、ucie costs and increase efficiency,enterprise management software solutions now have more capability to empower businesses.Cloud computing greatly simplifies the deployment of enterprise management software and diversified and modular products provide more choices for SMEs.Therefore,organizations th

22、at previously thought that management software was complicated and difficult to deploy may begin to pay more attention to this technology.Growing with Information Technology Application Innovation(ITAI),we expect the Company,with its mature products and unique experience,to show fast revenue growth

23、in the state-owned firms market.The promotion of ITAI policies,backed by the Chinese government,has enabled domestic vendors that lack relatively large enterprise service experience to stand on the same starting point to serve these giant organizations.On the one hand,with the industrys first cloud

24、native PaaS platform Cosmic,Kingdee is equipped with the capability to deliver strong products.On the other hand,the Company has gained unique experience in serving large organizations,developing human capital management software in collaboration with Huawei,the telecom giant.We believe that this co

25、operation better positions Kingdee in working with state-owned companies because the Company has accumulated knowledge in understanding what large companies need.Catalysts:More policies supporting ITAI;improved Covid pandemic situation improving delivery logistics.Key Risks:1)Industry competition ma

26、y intensify;2)cloud business R&D is not as expected;3)localization substitution may not be as expected;4)downstream customers may reduce IT expenditure;5)the progress of ITAI may not be as expected.See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageH

27、eader Kingdee International(00268 HK)Company Report 2.Earnings Forecasts and Valuation 2.1 Earnings Forecasts We forecast that revenue of the Company in 2022-2024 will be RMB5,036 million/RMB6,296 million/RMB7,864 million,equivalent to yoy growth of 20.6%/25.0%/24.9%,respectively.Our revenue forecas

28、ts are mainly based on the following:1)We forecast cloud business revenue to increase by 40.7%/38.3%/32.8%from 2022 to 2024,respectively,and the growth rate in 2022 will decrease by 3.5 ppt compared with that of 2021.We estimate that:The growth rate of enterprise cloud services revenue from 2022 to

29、2024 will be 38.8%/38.9%/37.5%,respectively,which mainly reflects the penetration of Cosmic and Constellation,two of Kingdees major cloud products,in large enterprises and the continuous acquisition of orders from fast-growing enterprises;The growth rate of small and micro business finance cloud ser

30、vices revenue from 2022 to 2024 will be 80.0%/50.0%/25.0%,respectively,mainly considering strong digitalization demand from small and micro enterprises;Industry cloud services revenue will grow at a rate of-12.0%/-5.0%/10.0%from 2022 to 2024,respectively,mainly due to the repeated impact from the lo

31、cal Covid epidemic on specific industries.2)We forecast that the growth rate of the revenue of the ERP(Enterprise Resources Planning)business from 2022 to 2024 will be-18.3%/-19.6%/-20.3%,respectively,mainly considering the Companys strategic reduction in traditional business to guide customers to u

32、se more cloud services.Table-1:Earnings Forecasts for the Company RMB mn 2020A 2021A 2022F 2023F 2024F Revenue Cloud business 1,912 2,758 3,880 5,366 7,124 YoY 45.6%44.2%40.7%38.3%32.8%-Enterprise cloud services 1,356 1,902 2,640 3,666 5,039-Small&Micro business finance cloud services 289 528 950 14

33、26 1782-Industry cloud services 267 329 289 275 302 Revenue ERP business and others 1,444 1,416 1,156 930 741 YoY-28.2%-2.0%-18.3%-19.6%-20.3%-Sales of software and hardware products 448 472 354 248 161-Services 996 944 802 682 579 Revenue-Total 3,356 4,174 5,036 6,296 7,864 YoY 0.9%24.4%20.6%25.0%2

34、4.9%Gross Profit 2,209 2,634 3,122 3,998 5,072 Gross Profit Margin 65.8%63.1%62.0%63.5%64.5%Operating Profit-415-467-546-366-169 Operating Margin-12.4%-11.2%-10.8%-5.8%-2.1%Profit/(loss)attributable to Owners of the Company-335-302-377-208-30 Net Margin-10.0%-7.2%-7.5%-3.3%-0.4%Basic EPS(RMB)-0.10-0

35、.09-0.12-0.06-0.01 Source:the Company,Guotai Junan International.See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kingdee International(00268 HK)Company Report Table-2:Key Assumptions RMB mn 2020A 2021A 2022F 2023F 2024F Cloud business YoY -

36、Enterprise cloud services 46.3%40.2%38.8%38.9%37.5%-Cosmic and Constellation 220.0%102.9%130.0%70.0%60.0%-Galaxy 31.5%24.3%23.7%23.1%21.8%-Small&Micro business finance cloud services 70.0%82.8%80.0%50.0%25.0%-Industry cloud services 23.6%23.0%-12.0%-5.0%10.0%ERP business and others YoY -Sales of sof

37、tware and hardware products -52.7%5.5%-25.0%-30.0%-35.0%-Services*-6.6%-5.3%-15.0%-15.0%-15.0%Source:the Company,Guotai Junan International.Note:Services include Software implementation services,Software solution consulting,maintenance,upgrade and other supporting services.We forecast that the net p

38、rofits attributable to the Company in 2022-2024 will be RMB(377)million/RMB(208)million/RMB(30)million,respectively,with yoy change of RMB75 million/RMB169 million/RMB178 million,corresponding to a net margin of-7.5%/-3.3%/-0.4%.Our forecasts are based on the following reasons:1)We estimate that the

39、 gross margin in 2022 will be 62.0%,a yoy decrease of 1.1 ppt.As an increasing number of large enterprises are served by the Company,unlike small and medium-sized enterprises,higher labor costs are needed to complete the deployment process,leading to a decrease in gross margin compared with products

40、 which can be used immediately.With the Companys penetration into the large enterprise market,we believe its bargaining power will gradually improve,which will lead to gross margin improvement;2)We expect that the R&D expenses ratio will remain at about 27%of the total revenue from 2022 to 2024,refl

41、ecting the Companys sustained,sufficient and stable investment to maintain the competitiveness of the cloud business.The selling and marketing expenses ratio will remain at about 39%,as the Company serves more and more large enterprises which are able to pay higher prices,we expect its sales efficie

42、ncy to improve.See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kingdee International(00268 HK)Company Report 2.2 Valuation We consider 2022-2024 PSR of 12.0 x,9.6x and 7.7x for Kingdee,equivalent to the target price of HK$20.20,and set our

43、investment rating as Buy.As a veteran of enterprise management software,the Company effectively seized opportunities from the cloud computing transformation and explosive growth of ITAI.The revenue of SaaS products has grown rapidly,accounting for more than 70%of total revenue,and thereby has become

44、 the main source of revenue for the Company.Considering the opportunities in the high-end ERP market and the Companys devoted investment in cloud services,we expect that the Company still has room for growth.A-share listed companies Yonyou Network(600588 SH),Glodon(002410 SZ)and Kingsoft Office(6881

45、11 SH)are similar in software business and market capitalization with the Company,where Yonyou Network is Chinas leading ERP provider and has the largest market share,Glodon primarily provides software and solutions for the real estate sector and Kingsoft Office is a leader in domestic productivity

46、software with its star product WPS.According to the closing prices on 10th November 2022,they have an average 2022 PSR of 15.7x;considering that Kingdee is still loss-making,but high growth potential,we give the Company a 2022 PSR of 12.0 x.Table-3:Peers Comparison Company Ticker Currency Last Price

47、 PE(x)PS(x)PB Market Cap 22F 23F 24F 22F 23F 24F 22F Local Currency(mn)HK Listed Companies Kingdee International 00268 HK HKD 12.900 n.a.n.a.806.3 8.2 6.6 5.3 5.6 44,829 Ming Yuan Cloud 00909 HK HKD 4.180 n.a.n.a.33.7 3.6 3.1 2.6 1.3 8,161 Bc Technology 00863 HK HKD 2.040 n.a.n.a.n.a.2.2 1.5 1.8 0.9

48、 894 Kingsoft 03888 HK HKD 23.200 88.9 43.2 27.6 3.8 3.1 2.8 1.2 31,605 Inpsur International 00596 HK HKD 2.020 13.5 7.9 5.1 0.7 0.6 0.5 1.0 2,307 Tencent 00700 HK HKD 231.400 18.0 15.1 12.5 3.6 3.2 2.9 2.3 2,217,093 Yeahka 09923 HK HKD 20.500 34.3 20.5 14.1 2.4 1.8 1.5 2.4 9,214 Simple Average 38.7

49、 21.7 149.9 3.5 2.9 2.5 2.1 Weighted Average 18.6 15.1 28.1 3.7 3.3 2.9 2.3 Mainland China Listed Companies Yonyou Network 600588 CH CNY 24.210 150.4 92.1 62.4 7.9 6.5 5.3 8.1 83,134 Glodon 002410 CH CNY 47.500 57.7 42.7 33.3 8.2 6.8 5.7 8.7 56,587 Beijing Thunisoft 300271 CH CNY 7.240 46.7 17.4 13.

50、4 1.5 1.3 1.1 n.a.5,970 Shanghai Baosight 600845 CH CNY 41.500 34.8 27.0 21.1 5.2 4.1 3.3 7.6 72,532 Beijing Kingsoft Office 688111 CH CNY 269.500 102.4 74.4 56.1 31.1 23.5 17.9 14.2 124,299 Guotai Epoint 688232 CH CNY 59.400 30.2 23.0 17.5 5.8 4.6 3.6 3.4 19,602 Simple Average 70.4 46.1 34.0 9.9 7.

51、8 6.1 8.4 Weighted Average 88.1 60.3 44.2 15.1 11.7 9.1 9.8 US and Europe Listed Companies SAP SAP GR EUR 97.950 21.8 18.2 15.6 3.9 3.6 3.4 10.1 120,320 Oracle ORCL US USD 75.660 30.4 15.3 13.5 4.6 4.1 3.9 2.4 203,992 Microsoft MSFT US USD 224.510 23.1 23.2 19.9 9.7 7.8 6.9 6.3 1,673,604 Salesforce

52、CRM US USD 142.060 94.1 30.0 25.0 8.4 4.6 4.0 (3.4)142,060 Intuit INTU US USD 368.550 49.9 26.8 23.1 10.0 7.1 6.3 5.3 103,883 Simple Average 49.4 23.8 20.4 8.2 5.5 4.9 4.1 Weighted Average 29.9 23.0 19.8 9.1 7.0 6.2 5.5 Overall Average 52.8 30.5 68.1 7.2 5.4 4.5 4.9 Overall Weighted Average 45.5 32.

53、8 30.7 9.3 7.3 6.1 5.9 Source:Bloomberg.Note:Closing prices are based on data on November 10th 2022 See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kingdee International(00268 HK)Company Report Figure-1:Kingdees Historical PS Graph Figure-2

54、:Kingdees Historical PB Graph 055Average-1 SD+1 SD 0246810121416Average-1 SD+1 SD Source:Bloomberg.Source:Bloomberg.See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kingdee International(00268 HK)Company Report 3.Looking Back on S

55、APs History,Understanding Customers Pain Points Is Core 3.1 ERP：The Nerve Center of Enterprise Operation Enterprise Resources Planning(ERP)integrates data from each segment of an enterprise,and is the nerve center to help the enterprise operate normally and efficiently.An enterprise needs its staff

56、to judge how to give optimal plans using existing resources to complete the process of receiving customer orders to preparing materials for production and then to delivering products and final payment collection.ERP helps enterprises to make decisions with high economic benefits from the aspects of

57、supply chain,manufacturing,finance,HR and procurement.For example,salespeople need to use ERP to manage customer orders,logistics personnel need ERP to ensure efficient and timely delivery of products and services,and finance personnel use ERP for accurate accounting.An ERP system is usually compose

58、d of multiple modules,covering most of the processes mentioned above.These modules are connected into an integrated management platform by information communication channels and shared databases.Although each module usually focuses on one business field,all modules extract information from the same

59、database.By using ERP,enterprise staff can improve their work efficiency,make business processes more transparent and establish a unified and real data source.With the development of cloud computing,the deployment model of ERP has gradually transitioned from traditional local deployment to cloud dep

60、loyment(i.e.ERP cloud).The latter is more flexible,scalable,and has lower initial investment costs.At the same time,some enterprises have adopted a hybrid deployment model with both methods.Figure-3:ERP Modules Almost Cover Every Aspect of An Enterprise ERPFinancegeneral ledger management,tracking a

61、ccounts payable(AP)and receivable(AR),generating financial reportsHuman Resources Managementincluding time and attendance and payrollSourcing and Procurementprocuring the materials and services they need to manufacture their goods or the items they want to resellSalestracking communications with pro

62、spects and customers and helps reps use data-driven insightsManufactureincluding MRP,production scheduling,manufacturing execution and quality managementLogistics and Supply Chain Managementtracking the movement of goods and supplies，providing tools for real-time inventory management,warehousing ope

63、rations,transportationEnterprise Asset Managementhelping asset-intensive businesses minimize downtime and keeping their equipment running at peak efficiencyR&D and Engineeringproviding tools for product design and development,product lifecycle management(PLM),product compliance Source:SAP,Guotai Jun

64、an International.After decades of development,ERP is entering the cloud computing era.In the 1960s,in order to improve the efficiency of manual processes,mainframe based and computerized business applications for finance and accounting were born.After this,independent solutions for special use emerg

65、ed.For example,the American tool manufacturer Black&Decker combined mainframes with the concept of economic order quantity(EOQ,proposed by the engineer Ford Whitman Harris in 1913),and pioneered material requirement planning(MRP),which mainly serves the manufacturing industry and can be regarded as

66、the precursor to ERP.In the 1980s,with increasing competition in the manufacturing industry,companies needed a more powerful tool,so MRP II was proposed.Compared with the previous version,MRP II integrated manufacturing processes into one system,such as procurement,bill of materials and contract man

67、agement.In the 1990s,enterprises expanded the concept of MRP II to businesses other than manufacturing,and the concept of ERP was formally born.In the 21st century,with the development of the internet and cloud computing,ERP has evolved from requiring local deployment to cloud deployment,no longer l

68、imited by hardware.At the same time,emerging technologies such as artificial intelligence,machine learning,internet of See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kingdee International(00268 HK)Company Report things(IoT)and robotic proc

69、ess automation(RPA)have also been adopted into ERP.However,no matter how ERP is developed,its core purpose is to help enterprises determine content,quantity and timeframe to complete customer orders.Figure-4:ERP Has Entered the Era of Cloud Computing 1960s:Mainframe computersFinance and Accounting19

70、70s:Distributed computingStand-alone Applications1980s:Industry applicationsMRP II for Manufacturers1990s:Client-serverIntroduction of ERP2000s:Web applicationsAdoption of Internet2010s:Cloud computingAdoption of Cloud Source:SAP,Guotai Junan International.3.2 Understanding customers business and hi

71、gh quality M&A enable SAP to be the top System Analysis Program Development(SAP),founded in Waldorf,Germany in 1972,is one of the earliest suppliers of enterprise management software.SAP has developed into a world leading software company and the largest ERP system supplier(as at 2021),and 99 of the

72、 worlds largest 100 companies are SAP customers.SAP has established the standard when it comes to ERP systems with its leader position through its early products such as SAP R/2 and SAP R/3.At present,the core cloud ERP product is SAP S/4HANA,but its product portfolio has expanded to CRM(customer re

73、lationship management),HCM(human capital management),SCM(supply chain management),etc.As at December 31,2021,SAP has accumulated more than 440,000 customers in more than 180 countries,80%of whom are SMEs.In terms of cloud business,user number has reached 240 million,with 65 data centers in operation

74、 in 35 locations in 16 countries.Figure-5:SAP Is the Global Top ERP Provider Source:Apps Run the World,Guotai Junan International.See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kingdee International(00268 HK)Company Report Figure-6:SAP Ran

75、ks First in Various Fields Source:SAP,Guotai Junan International.SAPs development history can be roughly divided into the following five periods:1)In the early years(1972-1980),SAP was founded and it developed its first products.2)During the R/2 period(1981-1990),SAP still focused on product iterati

76、on and development,and introduced the second generation main product,R/2,which was mainly run on mainframes,during which SAP was listed in Germany.3)During the R/3 period(1991-2000),with the development of personal computers and client/server architecture,SAP introduced R/3,bringing ERP to the Micro

77、soft Windows operating system.At the same time,SAP entered China and Latin America to try to open wider international markets,and completed listing on the New York Stock Exchange.At the same time,with the rise of the internet,it was seen that SAP had a corresponding layout on the internet and in e-c

78、ommerce,such as cooperating with Microsoft to release internet strategy and establishing its subsidiaries such as e-SAP.de which focuses on internet and SAP Markets which focuses on the electronic marketplace.4)During the e-commerce period(2001-2010),further development of internet technology enable

79、d business activities that originally needed to be carried out offline to be carried out online.The biggest feature of SAP during this period was that it began to conduct intensive M&As,and its theme was mostly around the internet and retail sector.It is worth noting that SAP noticed the trend and t

80、ook action when mobile internet started to sprout.In order to move its products mobile,Sybase,a software company engaged in information management and mobile data services,was acquired.5)In the digital economy period(2011-present),the highlights of SAP in this period are:SAP S/4HANA,the main product

81、 of the new generation of ERP,was launched,and it can only run on the SAP HANA database.SAP has also expanded to three models of cloud deployment,local deployment and hybrid deployment,keeping pace with the development of cloud computing and transforming to cloud computing;close cooperation with mai

82、nstream cloud vendors enables SAP HANA to run on AWS,Azure and GCP.SAP continued carrying out intensive acquisitions.Most of the target companies acquired during this period has become the main force of SAPs cloud revenue,such as Concur for travel expense management,Ariba for e-commerce and cloud pr

83、ocurement,and SuccessFactor for human capital management.In 2020,every one of these three companies contributed revenue of more than EUR1.0 billion,and SAPs total cloud revenue was EUR8.1 billion,which means that the sum of the revenue of the three companies acquired accounted for almost half of the

84、 cloud revenue.Looking back at its history we have summarized SAPs experience into three points:1)In terms of product research and development,we found that customers main issues were used to continuously polish core products.When SAP was developing software in the early years,its staff spent most o

85、f their time working in customers data centers and had a deep understanding of customers business processes and problems,and then realized the organic combination of enterprise See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kingdee Interna

86、tional(00268 HK)Company Report financial module and business module in the product.2)In terms of company growth,SAP constantly purchases high-quality targets to improve its product portfolio.Most of these targets are software companies that are in specific fields and industry solutions,which play an

87、 important role in building a richer product and solutions capability for SAP.3)In terms of ecosystem,SAP found the right partners for cooperation at the right time,many times.For example,in the PC era,SAP cooperated with Microsoft,and in the mobile internet and cloud computing era,it teamed up with

88、 the three largest cloud vendors.Behind the cooperation is SAPs more accurate judgment and grasp of the development trend of the IT industry.Table-4:SAP Has Been Active in Product Development and M&A Era Year Company Development Product Development Investment and M&A 1972 1980 The early years 1972 S

89、AP was founded A materials,information,and accounting system known as“MIAS”was completed 1973 Launched its first financial accounting system:RF 1975 New materials management system,RM,integrates purchasing,inventory management,and invoice verification 1977 SAPs“R”System began running on Siemens hard

90、ware 1978 Two new modules reached completion:Asset Accounting(RA),and Sales and Distribution(RV)1979 Turned its attention to developing R/2 and this software was designed with international markets in mind 1981-1990 The R/2 Era 1981 Launched R/2 1986 Launched human resources management software 1987

91、 Started developing R/3 1988 Listed in Germany Started developing RIVA a billing and administration system for utility companies.1990 Took a 50%stake in Steeb and acquiring CAS 1991-2000 The R/3 Era 1992 Launched R/3 1993 Started working with Microsoft to port R/3 to the Windows NT OS 1994 Entered C

92、hina and Latin America Acquired a 52%stake in DACOS 1996 Introduced Internet strategy with Microsoft 1998 Listed in NYSE Launched its New Dimension products to compete with best-of-breed providers in customer relationship and supply chain management.1999 e-SAP.de founded the internet subsidiary e-SA

93、P.de Announced a new strategy that completely realigns SAP and its product portfolio:mySAP.com 2000 Entered electronic marketplaces and set up a subsidiary SAP Markets accordingly 2001-2010 The e-business era 2001 Added enterprise portals to SAPs solution portfolio by acquiring TopTier 2003 Opened R

94、&D center SAP Labs in China 2004 Released the first version of SAP NetWeaver，which enabled SAP to offer fast,open,and flexible business applications that support end-to-end business processes on SAP and non-SAP systems.2005 Acquired retail providers Triversity and Khimetrics 2006 Launched Duet with

95、Microsoft,which enabled users to quickly and easily connect Office applications with SAP-based business processes 2007 Unveiled Business ByDesign,a product tailored to the needs of small and midsized enterprises Acquired Pilot Software，Yusa，OutlookSoft，WItcom and Maxware 2008 Acquired Business Objec

96、ts,a business intelligence applications provider 2009 Released Business Suite 7,a software suite designed to help businesses optimize their performance and reduce IT costs.2010 Acquired Sybase,which specializes in information management and mobile data services.2011-present The digital economy 2011

97、Introduced SAP HANA platform，which can analyze data in seconds Acquired SuccessFactors,a cloud application provider 2012 Acquired Ariba 2013 SAP Business Suite was built into SAP HANA Acquired hybris，a leader in commerce technology 2014 Acquired Concur,the largest SaaS acquisition in history 2015 La

98、unched SAP S/4HANA and its cloud edition,which was based on SAP HANA 2016 Announced a partnership with Apple to combine native apps for iPhone and iPad with the SAP HANA platform Acquired Roambis mobile-centric analytics and data visualization solution 2017 Announced a strategic co-innovation partne

99、rship with Google to make SAP HANA available on GCP 2018 Announced the new vision Intelligent Enterprise Launched SAP C/4HANA for CRM Acquired Qualtrics,the global pioneer of the experience management(XM)2019 Opened Cyber Fusion Center(CFC)in north America headquarter to protect users and data from

100、cyber threat Cooperated with Intel;Announced an extensive go-to-market partnership with Microsoft to accelerate customer adoption of S/4HANA and SAP Cloud Platform on Azure 2020 Launched industry cloud platform 2021 Announced RISE with SAP and SAP Business Network which is the worlds largest e-comme

101、rce network Acquired Signavio,a leader in the process intelligence and management Source:SAP,Guotai Junan International.See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kingdee International(00268 HK)Company Report Table-5:SAP Offers A Compr

102、ehensive Product Mix Product and Solution Description Content SAP S/4HANA Cloud SAP S/4HANA is SAPs ERP suite with intelligent technologies such as artificial intelligence(AI),machine learning,and advanced analytics.It can be deployed on-premise,in cloud(public and private)and hybrid.SAP S/4HANA Hum

103、an Experience Management SAP solutions for human experience management(HXM)under the SAP SuccessFactors brand aim to increase the value of a workforce by developing,managing,engaging,and empowering people.SAP SuccessFactors HXM Suite Intelligent Spend Management SAP provides a comprehensive set of s

104、olutions for customers to better navigate spend management decisions aligned with corporate strategies.SAP Ariba,SAP Concur,SAP Fieldglass,SAP Business Network Customer Experience SAP Customer Experience solutions bring together customer data,machine learning technology,and microservices to support

105、customer engagements across end-to-end processes in the areas of marketing,commerce,sales,and service.SAP Customer Experience SAP Business Technology Platform SAP Business Technology Platform(SAP BTP)spans a comprehensive set of on-premise and cloud-native technologies and services that support SAP

106、applications across four areas:database and data management;analytics;application development and integration;and AI and robotic process automation SAP Business Network aim to unify the points of interaction and integration across trading partners from supplier collaboration to logistics coordinatio

107、n and traceability,to equipment usage and maintenance.Ariba Network,SAP Logistics Network,SAP Asset Intelligence Network Business Process Intelligence solutions aim to help SAPs customers analyze their operations,understand their process bottlenecks,and improve their business process landscape.SAP S

108、ignavio Business Process Management(BPM)Suite Sustainable Business Solutions,Services,and Partnerships The goal of SAPs sustainability management solutions is to enable customers to include sustainability as a new dimension into their business processes and operations.Cloud for Sustainable Enterpris

109、es Experience Management Experience Management(XM)refers to both Qualtrics technology as well as the discipline of seeking out and closing the experience gaps across the four core areas of businesses customer,product,employee,and brand.Qualtrics XM Industry Cloud SAPs industry cloud is an open innov

110、ation space for SAP and its partners to build solutions that make a difference to the core business of its customers.Industry cloud solutions Services and Support Complementing SAPs software and technology offerings,it provides services and support to help customers continually realize business valu

111、e from their SAP investment.Source:SAP,Guotai Junan International.3.3 Shift in growth slowed down revenue;cloud operation data still promising Coupled with the local Covid epidemic,the growth driver is shifting,and the revenue shows slightly weak momentum.Total revenue in SAP financial reports consi

112、sts of cloud/software licenses and support/services.From 2013 to 2019,the Companys revenue growth was relatively stable,maintaining an annual growth rate of about 5%.The software licenses business is still the backbone,contributing 58.4%of the revenue in 2019,but yoy growth is only at singledigit pe

113、rcentage.Cloud business is the main force of growth and the direction of future transformation.In 2019,it contributed 25.2%of revenue,and growth rate remained above 30%every year,even exceeding 100%when at its peak.In 2020,due to the spread of the Covid-19 and transformation to the cloud subscriptio

114、n model,the revenue of the software licenses business declined yoy by 5.8%/3.2%/1.7%in 2020/2021/1H22,respectively,and its share in total revenue also declined to 45.5%in 1H22.Growth of cloud business revenue was also affected to some extent,but it still kept growing,with yoy growth rate of 16.6%/16

115、.6%/32.9%in 2020/2021/1H22,respectively.It is evident that the growth of cloud business in 1H22 has returned to pre-epidemic levels,driving SAPs total revenue to increase by 12.1%yoy,and the share of cloud business revenue in total revenue has reached 40.3%.If we assume that the proportion of cloud

116、business revenue in 2022 can be maintained at this level,then we can consider that it took SAP nearly 9 years to increase the proportion of cloud revenue in the total revenue from 4%to 40%.See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kin

117、gdee International(00268 HK)Company Report Figure-7:Total Revenue Slowed Down Figure-8:Segment of SAPs Cloud Business-25%0%25%50%75%100%125%051015202530ServiceSoftware licenses and supportCloudCloud YoYTotal Revenue YoYEUR bn 024680202021SaaS/PaaS-Intelligent Spend GroupSaaS/PaaS-OthersIa

118、aSEUR bn Source:SAP,Guotai Junan International.Source:SAP,Guotai Junan International.Revenue from core cloud products and the current cloud backlog both rose steadily.According to SAP,cloud revenue can be divided into intelligent spend(IS),SaaS/PaaS and IaaS.Among them,the solutions portfolio provid

119、ed by IS mainly comes from acquired software companies,such as Ariba and Concur.This business is mainly oriented to enterprise expense scenarios,such as procurement and travel expenses.In 2021,the scale of IS revenue was more than EUR2.5 billion,accounting for about 30%of cloud revenue,with the high

120、est gross margin of 79.5%.SaaS/PaaS products are the main revenue component of cloud business,at about EUR5.7 billion in 2021,accounting for 61%of the total.SaaS/PaaS mainly includes five parts:ERP/HCM(human capital management)/CRM(customer relationship management)/XM(experience management)/BTP(busi

121、ness technology platform).The core products ERP and HCM are the largest,with revenue from both bringing more than EUR1.0 billion.ERP products mainly refer to SAP S/4HANA,which is the latest generation of flagship ERP products after R/3.The obvious difference between S/4HANA and previous generations

122、is that S/4HANA can only be run on the SAP HANA database and it has adopted the cloud deployment model.SAP HANA database was launched in 2011,allowing users to realize computing in seconds.SAP S/4HANA was launched four years later.According to data released by SAP,SAP S/4HANAs non-IFRS revenue in 20

123、21 and 1H22 was EUR1,089 million and EUR876 million,and respective yoy growth rate was 47.8%and 71.5%,rising significantly mainly because of increasing ARPU.In terms of the number of customers,SAP S/4HANA had about 20,000 in 2Q22,a yoy increase of 17.6%,while the number in 3Q18 was 10,000;SAP spent

124、15 quarters to double the number of customers.Due to the expansion of customer base,the yoy growth rate of customers slowed down compared with that before 2020,but SAP S/4HANA kept adding 2,000-3,000 new customers every quarter.The current cloud backlog,which reflects the future revenue reserve,also

125、 grew steadily.The data for 2Q22 was EUR10.4 billion,up 25%yoy.Table-6:ERP And Human Capital Management Are The Largest Contributors in SaaS/PaaS Cloud Model Revenue GM Solution Category Solution Portfolio Intelligent Spend EUR2.8 bn(+6%)79.5%Spend Management(EUR2.5 bn)SAP Ariba/SAP Concur/SAP Field

126、glass SaaS/PaaS EUR5.7 bn(+27%)70.3%ERP(EUR1.0 bn)SAP S/4 HANA/ERP for SME Human Capital Mgmt.(EUR1.0 bn)SAP SuccessFactors Customer Relationship Mgmt.(EUR0.5 bn)E-Commerce/Customer Data/Marketing/Sales/Service Experience Mgmt.(EUR0.5 bn)Qualtrics Business Technology Platform(EUR0.5 bn)Database&Data

127、 Mgmt./Intelligent Technologies/App Development&Integration/Analytics IaaS EUR0.9 bn(+12%)33.6%HANA Enterprise Cloud(EUR0.5 bn)SAP HANA Enterprise Cloud Source:SAP,Guotai Junan International.Note:1)All figures are based on non-IFRS and refer to cloud revenue in 2021.2)Percentages in parentheses in R

128、evenue column are growth rates which are at constant currencies.See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kingdee International(00268 HK)Company Report Figure-9:Cloud Backlog Has Been Increasing Steadily Figure-10:S/4HANA Shows Good M

129、omentum 6.76.76.67.27.67.88.29.49.710.40%5%10%15%20%25%30%0510151Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22Current Cloud BacklogYoY GrowthEUR bn 2272572763294044720%20%40%60%80%100%005001Q212Q213Q214Q211Q222Q22SAP S/4HANA Cloud RevenueYoY GrowthEUR mnSource:SAP,Guotai Junan Internat

130、ional.Source:SAP,Guotai Junan International.Note:1)Current Cloud Backlog means contractually committed cloud revenue SAP expects to recognize over the upcoming 12 months.2)All figures are Non-IFRS and growth rates at constant currencies.Note:All figures are Non-IFRS and growth rates at constant curr

131、encies.Figure-11:S/4HANA Customer Number in 2Q22 Doubled Since 3Q18 6.410.020.00%5%10%15%20%25%30%35%40%45%0510152025SAP S/4HANA customer countYoY Growththousand Source:SAP,Guotai Junan International.Gross margin has been slightly increasing year by year,and expense ratios remained relatively stable

132、.SAPs gross margin has been relatively stable,and it remains above 70%all the year round.Among them,the gross margin of software licenses is relatively high,87.6%in 2021,while gross margin of cloud business was 69.5%.Note that there is a small part of IaaS business,which accounted for only about 10%

133、of the cloud revenue and with gross margin of about 30%,which reduced the overall gross margin of cloud business.In terms of expenses,SAPs R&D expense ratio and sales expense ratio together remained at 40%-50%,of which the sales expense ratio fluctuated slightly at about 27%and the R&D expense ratio

134、 at about 14%-20%.Assuming that the sales expense ratio plus R&D expense ratio of cloud business was 10 ppt higher that of the Companys level,that is,50%-60%,to reflect the importance and necessary resources allocated to cloud,then there is still 10%-20%room for profitability after deducting expense

135、s from the gross profit.Based on this estimation,we believe that SAPs cloud business is likely to demonstrate operating profits.See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kingdee International(00268 HK)Company Report Figure-12:SAPs Gro

136、ss Margin Is Stable Figure-13:Constant Investment in R&D and Marketing 0%20%40%60%80%100%200211Q222Q22TotalCloudSaaS/PaaS-Intelligent Spend GroupSaaS/PaaS-OtherIaaS 0%10%20%30%40%0369820H22Sales and marketingR&DR&D(as%of revenue)Sales and marketing(as%of revenue)EUR

137、bn Source:SAP,Guotai Junan International.Note:SaaS/PaaS-Intelligent Spend Group,SaaS/PaaS-Other and IaaS are subcomponents of Cloud.Source:SAP,Guotai Junan International.Based on the above analysis,we believe that SAP is currently in a good position for a SaaS company,that is,in terms of financial p

138、erformance,cloud revenue growth recovering to pre-pandemic levels,share of cloud revenue gradually expanding to match that of software licenses business,and contributing profits;in terms of operation data,the number of customers and ARPU of SAP S/4HANA,its major product,have been increasing.We belie

139、ve that the essence behind these impressive achievements is that SAP products can solve customer problems.Since its establishment,SAP has been working side by side with customers and thereby gaining a deep understanding of their business,and most of the worlds famous companies are SAPs customers.Thi

140、s allows SAP to get close to the forefront of issues encountered by enterprises.Through the service of these famous enterprises,SAP can create a benchmarking effect and improve its products,realizing a positive feedback cycle from solving customer issues to improving SAPs influence,and to improving

141、product competitiveness,and then to gaining new customers.See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kingdee International(00268 HK)Company Report 4.Kingdee:Chinas ERP Trailblazer 4.1 Fast transformation,opening a new era of enterprise

142、 business capability(EBC)Kingdee is transforming to a cloud service company,with an increasingly clear product mix layout.Kingdee was founded in Shenzhen in 1993 by Mr.Xu Shaochun,formerly known as Shenzhen Aipu Computer Technology Co.,Ltd.,and is now one of the largest enterprise management softwar

143、e vendors in China.After about 30 years of development,Kingdee has transformed from a traditional license model to a cloud service model.For large enterprises,high growth companies,and small and micro firms,the Company provides cloud ERP products such as Kingdee Constellation(Constellation),Kingdee

144、Galaxy(Galaxy),and Kingdee Stellar(Stellar),covering the main business links of enterprises such as in fields of human capital,finance,and tax,as well as the Cosmic PaaS platform(Cosmic).The Companys customers are distributed in various industries.Famous companies such as Huawei,China Merchants Grou

145、p,Chinasoft International and China Huaneng Group are all Kingdees customers.According to the 2021 white paper on Chinas industrial software development,Kingdee ranks third in the overall domestic ERP market with 18%share,and fifth in the high-end ERP market with 6%share.The top two vendors in high-

146、end markets are still dominated by foreign vendors SAP and Oracle,and domestic vendors still have room for improvement.We divide the development of the Company into four stages:1)The financial software era(1991-1997):it was mainly about the establishment of the Company and the development of financi

147、al software aimed at freeing financial personnel from heavy manual work.In 1994,Microsoft launched the simplified Chinese version of Windows,and the next year,the Company launched the Windows version of Kingdee financial software.2)The ERP era(1998-2011):this was the expansion stage for the Company.

148、The main achievement was the launch of Kingdee K/3,which later became a major ERP product.At the same time,the Company also actively developed industry cloud services,such as Apusic,which is the precursor to Kingdee Tianyan(金蝶天燕);,the precursor to Kingdee Jingdou Cloud(金蝶精斗云);and Kingdee Weibo,the p

149、recursor to CloudHub(云之家).The Company also completed listing on the main board of the Hong Kong Stock Exchange,and acquired 90%share of Beijing Kaisi(北京开思)from TCL.Kaisi was also an ERP software vendor at that time and had a share in the high-end ERP market,which thereby enabled the Company to enter

150、 the high-end ERP market,further expanding its market share and influence.3)During the cloud service period(2012-2018),cloud computing gradually emerged in China.The Company seized the cloud transformation trend and established the ERP Cloud Service Business Department.In 2012,K/3 Cloud was launched

151、,and the CloudHub,Jingdou Cloud and Cosmic platform were also released during this period;Another noteworthy feature was that the Company actively cooperated with other enterprises,such as expanding sales channels with Jingdong(JD),and cooperated in cloud computing with Kingsoft and AWS.4)From ERP t

152、o EBC(2019-present).EBC is a packageable capability.Gartner,the consulting company focusing on IT industry,proposed EBC in 2019,where it was adopted by Kingdee and many other SaaS companies.In the period of cut-throat competition or delicacy management,ERP is aimed to not only save costs for enterpr

153、ises,but also to enable enterprises to perform well on the revenue side.EBC can be regarded as the latest enterprise management software revolution after MRP,MRP II and ERP.In terms of products,Stellar,Constellation and HR system projects have been developed in conjunction with Huawei and have all b

154、een released and launched during this period.Through the above development trajectory,we found the following characteristics:1)the Company has a precise grasp of the industry trend,reflected in the quick launch of financial software after Microsoft released the simplified Chinese version of its Wind

155、ows operating system,and the Companys decision to transform to cloud services when cloud computing was emerging in China.2)Actively cultivating its ecosystem.On the one hand,the Company donated Kingdee products to top universities such as Tsinghua University and Peking University in the early stages

156、 and established a K/3 training base in Shenzhen University.On the other hand,after entering the cloud service era,the Company cooperated closely with relevant companies such as Kingsoft and AWS.See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHead

157、er Kingdee International(00268 HK)Company Report Table-7:Kingdee Has Fully Embraced The Cloud Computing Era Era Year Company Development Product Development 1991-1997 Finance and Accounting 1991 The founder of the group,Mr.Xu Shaochun,founded Shenzhen Aipu Computer Technology Co.,Ltd.Launched the V1

158、.0 version of the Aipu computer accounting system 1993 Mr.Xu Shaochun founded Kingdee 1994 Launched V3.0 financial software 1995 Launched finance software for Windows version 1.0 1996 Launched finance software V2.51 For Windows 1998-2011 ERP 1998 The National Agency Conference was successfully held；

159、Introduced IDGs RMB20 million venture capital to fully enter the enterprise management software market；Donated Kingdee products to the Ministry of Education,Peking University,Tsinghua University,Fudan University and other famous universities 1999 Launched K/3 2000 With the platinum partnership with

160、Microsoft,Kingdee 2000 and K/3 became the first application in the world that can be successfully ported to Windows 2000 and SQL Sever 2000 Established Apusic software company,whose main product is Web Enabled application server based on J2EE technology 2001 Listed on the GEM of the Hong Kong Stock

161、Exchange；Acquired 90%shares of Beijing Kaisi from TCL 2002 Donate K/3 system to Shenzhen University 2003 Released EAS for J2EE V3.0 2004 Release the new generation technology platform Kingdee K/3 BOS for K/3 2005 Listing on the main board of Hong Kong Stock Exchange 2007 was officially launched,indi

162、cating that the Company was the first to try out the SaaS cloud service model in the industry 2008 Announced the transformation from a product company to a service company,and vigorously developed the worlds leading online management and e-commerce service platform 2011 Launched Kingdee Weibo,and pr

163、oposed a cloud management strategy based on emerging technologies such as mobile Internet,social networking,cloud computing,etc 2012-2018 Cloud 2012 Cooperated with JD to create the Internet distribution channel Kingdee Weibo was upgraded to CloudHub;Kingdee K/3 Cloud was released 2014 Founded the E

164、RP Cloud Service Business Department;Strategic cooperation had been reached with Inspur,and both parties will cooperate to promote the technical integration and market cooperation in Inspur government cloud,domestic key host systems and Kingdee middleware Apusic series products 2015 Cooperated with

165、Kingsoft in mobile office cloud services,cloud storage,cloud security and other fields;Signed cooperation agreement with AWS;JD subscribed for about 10%of the Companys shares,and the two sides cooperated to provide SMEs with ERP integration solutions based on cloud;Taiji strategically invested in Ki

166、ngdee middleware;The Company and Xiamen International Trade Group jointly funded the establishment of Kingdee Automobile Network Technology Co.,Ltd Released Zhangwuyou(账 无 忧),an agency bookkeeping platform 2016 The company and AISINO(航天信息)became strategic partners Launched Jingdou Cloud 2017 The Com

167、pany formally upgraded Kingdee Cloud ERP to Kingdee Cloud 2018 Mr.Xu Shaochun released his personal official account to talk directly with business operators Launched a new generation of large enterprise cloud service platform Kingdee Cosmic 2019-present From ERP to EBC 2019 Mr.Xu Shaochun proposed

168、that ERP no longer only focuses on resources or plans,but is rapidly shifting to business and gradually developing into a more extensive enterprise business capability(EBC)The Company and China Unicom jointly established Yundee(云镝智慧),an industrial Internet platform company 2020 Released Kingdee Stel

169、lar 2021 Huaweis global HR project was officially launched;Cosmic PaaS platform v4.0 was released,and its SaaS application was named as Constellation Source:the Company,Guotai Junan International.See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHea

170、der Kingdee International(00268 HK)Company Report Figure-14:Kingdee Is One of The Top 3 Vendors Figure-15:High-End Market Still Occupied By Foreign Vendors 40%20%18%14%3%5%YonyouInspurKingdeeSAPOracleOthers 33%20%14%8%6%19%SAPOracleYonyouIBMKingdeeOthers Source:2021 China Industrial Software White P

171、aper,Guotai Junan International.Source:2021 China Industrial Software White Paper,Guotai Junan International.Figure-16:Cloud Revenue Has Become the Main Growth Driver Figure-17:Cloud Business Taking Up More Than 70%of Total Revenue-40%-20%0%20%40%60%80%100%01,0002,0003,0004,0005,000200202

172、0211H22CloudERPCloud YoYERP YoYRMB mn 25%30%39%57%66%76%75%70%61%43%34%24%0%20%40%60%80%100%2002020211H22CloudERPSource:the Company,Guotai Junan International.Source:the Company,Guotai Junan International.4.2 Comprehensive product mix enables the Company to serve customers of different si

173、ze Cosmic provides a platform for adopting EBC with its packageable capability,while Constellation is aimed at empowering large enterprises.Launched in 2018,Cosmic is the first enterprise-level cloud platform based on cloud native architecture in China.Its popular cloud native technologies include m

174、icroservices,containers and distributed technologies.It mainly provides scenario-based platform services for large enterprises.In the year of launch,it signed 15 customers,such as Huawei and Wens Foodstuff Group,and achieved revenue of more than RMB7.0 million within a short period after the product

175、 rollout.Characterized by modern enterprise technology architecture,low-code and full openness,Cosmic covers 10 major fields such as development service cloud,process service cloud,data service cloud and integrated service cloud.Constellation was released in 2021 and is the SaaS part of Cosmic.With

176、its underlying technology still being the Cosmic PaaS platform,Constellation is positioned as a large enterprise EBC.Constellation consists of HR cloud,finance cloud,tax cloud and other modules.Its representative applications are the finance middle platform,enterprise performance management(EPM),and

177、 global treasury management.Notably,HR cloud has been developed based on Huaweis practices.By collaborating with Huawei,HR cloud is able to empower other companies using the experiences and capabilities obtained from a giant international company.See the last page for disclaimer Page 11 November 202

178、2 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kingdee International(00268 HK)Company Report Growth of Cosmic and Constellation has been remarkable with customers mostly deploying the software programs in hybrid cloud.In 2021 and 1H22,Cosmic and Constellation contributed revenue of RMB385 mi

179、llion and RMB284 million,respectively,with yoy growth of 102.9%and 77.6%.According to data from Kingdee in 2021,finance cloud accounts for 42.0%of total subscriptions of Cosmic and Constellation,an increase of about 6 ppt yoy.The Cosmic platform accounts for 36.4%,which remained stable yoy.From the

180、perspective of deployment model,60%of customers used the hybrid cloud model,and the rest deployed in public cloud.We believe that the hybrid cloud deployment model will still be popular for some time,especially for large enterprises.However,with the development of cloud computing technology and the

181、gradual maturity of the markets recognition of cloud computing,share of public cloud deployment will rise in the long run.From the perspective of customer sources,43%of customers came from upsell of existing customers in 2021,the remaining 28%came from the upgrading of traditional ERP customers,and

182、30%came from new customers.Figure-18:Kingdee Has A Comprehensive Product Mix for Customers of Different Size Kingdee InternationalPackageableEnterprise PaaS PlatformLarge EnterpriseFast-growing CompanySmall&Micro CompanyIndustry CloudKingdee Cloud-CosmicKingdee Cloud-ConstellationKingdee EAS CloudKi

183、ngdee Cloud-GalaxyKingdee Cloud-StellarKingdee Cloud-Jingdou CloudKingdee KIS CloudCloudHub/Guanyi Cloud/Wojiacloud/Cargeer/Zhangwuyou/Yundee/Apusic Source:the Company,Guotai Junan International.Figure-19:Modules of Cosmic PaaS Platform Source:the Company,Guotai Junan International.See the last page

184、 for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kingdee International(00268 HK)Company Report Figure-20:70%ofof Cosmic&Constellation Customers Came from Existing Users Source:the Company,Guotai Junan International.Kingdee Cloud Galaxy(Galaxy)is the market l

185、eader in fast-growing enterprise SaaS,and the main contributor of the Companys cloud business revenue.Galaxy came from the Companys previous classic ERP product,K/3 Cloud,and it has ranked first in terms of market share of IDCs application software for fast-growing enterprises in China for 17 consec

186、utive years.Galaxy has a personalized cloud development platform,a social ERP system,multi-organization operation collaboration and is business process driven.Its main modules include finance cloud(providing a comprehensive business,finance and tax integrated management platform),supply chain cloud(

187、intelligent operation supply chain symbiotic service platform),manufacture cloud(integrated lean manufacturing operation platform),omni-channel cloud(digitalization for channel management)and product lifecycle management(PLM)cloud(IT platform for IPD practices),among which manufacture cloud is the o

188、nly platform in China that provides PLM+ERP+manufacturing operation management(MOM)integration.PLM cloud has already helped HMN Technologies(华海通信)and other large enterprises which adopt IPD to build their IT system.According to data from 2021,94.9%of the Companys Galaxy customers subscribed to the f

189、inance cloud,63.3%of customers subscribed to the supply chain cloud and 34.7%of customers subscribed to the manufacturing cloud.65%of customers came from the upgrading of customers who used local deployment before,which can be seen as a sign of good customer loyalty,and the remaining 35%came from ne

190、w customers.In 2021 and 1H22,Galaxy achieved revenues of RMB1,418 million and RMB786 million,respectively,with yoy growth of 24.3%and 16.1%.Growth rate declined,but the operating profit margin remained above 20%.The number of customers continued to rise,reaching 28,300 in 1H22,but the ARPU in 2021 a

191、nd 1H22 declined slightly.See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kingdee International(00268 HK)Company Report Figure-21:Galaxy Offers Different Versions For Customers To Choose From Source:the Company,Guotai Junan International.Fi

192、gure-22:Galaxy Revenue Keeps Rising Figure-23:Galaxy Customers Increasing Fast 0%10%20%30%40%50%02004006008001,0001,2001,4001,600200211H22Galaxy RevenueYoYRMB mn 0070050021Number of customers(in thousands,left)ARPU(RMB thousand,right)Source:the Company,Guo

193、tai Junan International.Source:the Company,Guotai Junan International.Stellar and Jingdou Cloud help small and micro companies,and the industry cultivates the best industry practices.Launched in 2020,Stellar was also built on the Cosmic PaaS platform,mainly for online operation and digital managemen

194、t of small companies.Its main modules include finance and tax management,purchases,sales and inventory management,retail management and expense reimbursement.In 2021,Stellar had 11,000 customers in total,and the number in 1H22 reached nearly 20,000,revenue yoy growth rate of 337.7%in 1H22.Jingdou Cl

195、oud was launched in 2016,the precursor being Y,an online bookkeeping and business management platform under the Company in 2007.It is positioned to serve micro companies and start-ups.Its main service modules are cloud accounting,cloud purchases,sales and storage,and cloud reimbursement.The revenue

196、of Jingdou Cloud grew rapidly,with growth rate of more than 40%from 2017 to 2020,peaking at 105%.The number of customers in 2021 and 1H22 was 212,000 and 231,000,respectively.The Company also provides industry cloud services in subdivided fields.Among them,Kingdee Apusic continues to take the lead i

197、n serving government ITAI;Guanyi Cloud released a version of the Cosmic e-commerce cloud version in 2020,and Wojiacloud has set foot in 165 cities nationwide as at 2020.See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kingdee International(0

198、0268 HK)Company Report Table-8:Industry Cloud Targeting Various Industry Customers Product Description CloudHub(云之家)Intelligent cooperative office Guanyi Cloud(管易云)E-commerce cloud service platform Wojiacloud(我家云)Digital platform for urban space operation service Cargeer(车商悦)Solutions for automotive

199、 dealers Zhangwuyou(账无忧)Intelligent finance and tax SaaS platform tailored for agency bookkeeping companies Kingdee Apusic(金蝶天燕)Cloud platform service for government Yundee(云镝智慧)Industrial Internet platform Source:the Company,Guotai Junan International.4.3 Continuous development of cloud business an

200、d rapid growth of subscription ARR The Company entered a critical period of growth shift,and cloud business revenue continued to rise rapidly.Kingdees revenue mainly consists of cloud business and ERP business.In 2021 and 1H22,the total revenue of the Company was RMB4,174 million and RMB2,197 millio

201、n,respectively,with yoy growth of 24.4%and 17.3%.In 2021,cloud business revenue was RMB2,758 million,a yoy increase of 44.2%,while ERP business revenue was RMB1,416 million,a yoy decrease of 2.0%.Due to the promotion of cloud business and the strategic contraction of ERP business,such as the termina

202、tion of traditional ERP product KIS and K/3 WISE in 2020,cloud business already accounts for 76%of the total revenue in 1H22,an increase of 10 ppt yoy.In the future,with further concession of ERP business,we expect that revenue from cloud business as a share of total revenue will continue to increas

203、e.Figure-24:Enterprise Cloud Is the Largest Component Figure-25:Major Cloud Services Revenue Still at a High Level 05001,0001,5002,0002,5003,000200211H22Industry cloud servicesSmall&Micro business finance cloud servicesEnterprise cloud servicesRMB mn-20%0%20%40%60%80%100%20H22E

204、nterprise cloud services YoYSmall&Micro business finance cloud services YoYIndustry cloud services YoY Source:the Company,Guotai Junan International.Note:1)Cosmic,Constellation and Galaxy are included in the Enterprise Cloud Services.2)Jingdou Cloud and Stellar are included in the Small&Micro Busine

205、ss Finance Cloud Services.Source:the Company,Guotai Junan International.See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kingdee International(00268 HK)Company Report Figure-26:Breakdown of ERP Revenue Figure-27:ERP Revenue Contracting Strat

206、egically 05001,0001,5002,0002,5002002020211H22Sales of software and hardware productsServicesRMB mn-60%-50%-40%-30%-20%-10%0%10%20%200211H22Sales of software and hardware products YoYServices YoY Source:the Company,Guotai Junan International.Note:Services refers to software imp

207、lementation services,software solution consulting,maintenance,upgrade and other supporting services.Source:the Company,Guotai Junan International.The operational indicators of cloud business show a rapid upward trend.Regarding revenue growth,subscription annual recurring revenue(ARR)was about RMB1,5

208、70 million and RMB1,860 million in 2021 and 1H22,respectively,with yoy growth of 57.0%and 46.5%.It is worth noting that it only took two years for subscription ARR to double from RMB630 million in 2019,reflecting the strong growth momentum of cloud business.In terms of revenue predictability,yoy gro

209、wth of contractual liabilities of cloud business from 2019 to 2021 was 82.1%/83.6%/71.9%,respectively;in 2021,the dollar retention ratio of the core product Galaxy increased by 12.6 ppt to 98.6%yoy,while Cosmic and Constellation was 120%.The dollar retention ratio is defined as the ARR of the curren

210、t period divided by the ARR of the previous period.The higher dollar retention ratio reflects the predictability and sustainability of cloud revenue,which is essentially from customers satisfaction of the products so that they are willing to remain subscribed,increase purchases and upgrade their cur

211、rent services.Figure-28:ARR Increasing at High Speed Figure-29:Cloud Contract Liabilities Shows Healthy Momentum 0%20%40%60%80%100%05001,0001,5002,00020H201H211H22Subscription ARRYoYRMB mn-40%-20%0%20%40%60%80%100%05001,0001,5002,00020021Contract liabilities Cloud Contract liab

212、ilities ERP YoY CloudYoY ERPRMB mnSource:the Company,Guotai Junan International.Source:the Company,Guotai Junan International.See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kingdee International(00268 HK)Company Report Figure-30:Improving

213、Dollar Retention Ratio of Galaxy 75%80%85%90%95%100%200211H201H211H22Dollar retention ratio-Galaxy Source:the Company,Guotai Junan International.Profit is under pressure with declining selling and marketing expense ratio and strengthened R&D.In 2021,the Companys selling and marketing expe

214、nse was RMB1741 million,with the expense ratio at 41.7%,7.7 ppt lower than 49.4%in 2019,and 11.4 ppt lower than that in 2018,indicating that the Companys sales efficiency has been improving year by year.In terms of R&D,the Company has ramped up the pace since 2019,with yoy growth in 2019 to 2021 bei

215、ng 44.8%/67.7%/20.4%,respectively,and the R&D expense ratio has changed yoy by 3.2 ppt/11.7 ppt/-0.9 ppt.The significant increase in R&D is mainly due to the Companys increased investment in Cosmic and Constellation,based on the strategy of platform+people,finance and tax+ecosystem.The withdrawal of

216、 KIS and K/3 WISE combined with rising R&D expenses led to the rapid decline of the Companys operating margin from 12.7%in 2019 to-12.4%in 2020,and slightly narrowed down to-11.2%in 2021.We believe that the loss led by structural adjustment of revenue and increased investment in R&D are in line with

217、 expectations,reflecting the Companys firm commitment to cloud transformation.Figure-31:Increasing Investment in R&D and Selling and Marketing Expenses Figure-32:R&D Expenses Experienced High Growth 05001,0001,5002,0002,5003,0003,5002002020211H22R&D expensesSelling and marketing expensesR

218、MB mn-20%0%20%40%60%80%100%200211H22R&D expenses YoYSelling and marketing expenses YoY Source:the Company,Guotai Junan International.Source:the Company,Guotai Junan International.See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Ki

219、ngdee International(00268 HK)Company Report Figure-33:Lower GM of Cloud Business Puts Pressure on Profitability Figure-34:Improving Operating Margin of The Cloud Business-40%-20%0%20%40%60%80%100%2002020211H22Gross MarginR&D%Selling and marketing%Operating Margin-40%-30%-20%-10%0%10%20%30

220、%40%200202021OPM-CloudOPM-ERP Source:the Company,Guotai Junan International.Source:the Company,Guotai Junan International.4.4 Digitalization demand is still booming,ITAI offers catalysts in the high-end market Enterprises are accelerating cloud transformation.Cloud computing is in full sw

221、ing in China,according to the Chinese Academy of Information and Communications Technology(CAICT),the size of Chinas public cloud market reached RMB218.1 billion in 2021,with yoy growth of 70.9%.In 2021,the size of IaaS/PaaS/SaaS markets were RMB161.5 billion/RMB19.6 billion/RMB37.0 billion,respecti

222、vely,yoy growth of 80.4%/90.7%/32.9%,respectively.We can infer that Chinas cloud computing structure is still dominated by IaaS in terms of both size and growth,but PaaS and SaaS are also developing rapidly.In addition,the emergence of Covid-19 in 2020 largely changed peoples traditional ways of wor

223、king and collaborating.Enterprises needed to solve the issues that came with Covid-19,and cloud computing has been one of these solutions.The automation and intelligence of cloud ERP can reduce manual error and greatly improve the efficiency of enterprise operations.The Ministry of Industry and Info

224、rmation Technology issued the Special Action Plan for Digital Empowerment of SMEs in 2020;it mentioned to help SMEs to obtain resources and application services from the cloud to meet the cloud demand of SMEs R&D design,production and manufacturing,business management,marketing and other business sy

225、stems,and encourage enterprises to carry out digital transformation.The high-end market is still dominated by foreign vendors,but ITAI policies have started to be catalysts for domestic vendors.The ERP system itself stores a large amount of core business data of enterprises.Because foreign vendors s

226、tarted early,have relatively advanced management concepts,and their products often combine business and finance closely,they can cope with more comprehensive and complex business scenarios than domestic vendors can.Foreign vendors have an advantage in finance and accounting modules,which has enabled

227、 them to take a large share in the high-end ERP market.Therefore,security has become a core consideration.At the national level,China has actively introduced policies related to ITAI to promote localization in basic hardware to application software.For example,the National Peoples Congress mentioned

228、 in the 14th Five-Year Plan and the Outline of Vision Goals for 2035 that China should cultivate and expand emerging digital industries such as artificial intelligence,big data,blockchain,cloud computing,network security,and improve the level of communication equipment,core electronic components,key

229、 software,and other industries.Kingdee is a member of the ITAI Working Committee,its products such as Cosmic have completed the adaptation certification with 23 domestic ITAI partners such as China Electronics Cloud,Huawei Gauss DB(for open Gauss)and Alibaba Cloud Compute Nest.We believe that the Co

230、mpanys future performance in the localization in the high-end ERP market will be a key driver for revenue growth.See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kingdee International(00268 HK)Company Report Figure-35:Cloud Computing Still G

231、rowing at a Fast Pace Figure-36:All Segments of Cloud Computing Growing at High Speed 05002001920202021IaaSPaaSSaaSRMB bn 0%40%80%120%160%200202021IaaSPaaSSaaS Source:CAICT,Guotai Junan International.Source:CAICT,Guotai Junan International.Table-9:Favorable Policies

232、Are Introduced Constantly Date Authority Policy Content 2022.05 Ministry of Industry and Information Technology On Carrying out Joint Action to Promote Financing and Innovation of Large,Medium and Small Enterprises(2022-2025)(关于开展“携手行动”促进大中小企业融通创新（2022-2025年）)Give play to the leading role of large e

233、nterprises in digitalization.Improve the digitalization level of SMEs.Strengthen the supporting role of industrial Internet.2022.01 The State Council The 14th Five-Year Plan Digital Economy Development (“十四五”数字经济发展规划)With data as the key element and the deep integration of digital technology and the

234、 real economy as the main line,we will strengthen the construction of digital infrastructure,improve the governance system of the digital economy,promote digital industrialization and industrial digitalization,and enable the transformation and upgrading of traditional industries.2021.12 Cyberspace A

235、dministration of China The 14th Five-Year Plan for National Informatization(“十四五”国家信息化规划)Promote the deployment of industrial knowledge software and business management software platform;Carry out software value promotion actions,and continue to build famous software cities,parks,enterprises and pro

236、ducts.2021.03 National Peoples Congress Outline of the 14th Five-Year Plan and 2035 Long term Goals(“十四五”和 2035 年远景目标纲要)Cultivate and expand emerging digital industries such as artificial intelligence,big data,blockchain,cloud computing,and network security,and improve the industrial level of commun

237、ication equipment,core electronic components,and key software.2020.08 State-owned Assets Supervision and Administration Commission Notice on Accelerating the Digital Transformation of State owned Enterprises(关于加快推进国有企业数字化转型工作的通知)Explore new IT architecture model,build digital technology enabling pla

238、tform,and accelerate enterprise to move to cloud.2020.03 Ministry of Industry and Information Technology Special Action Plan for Digital Enabling of SMEs(中小企业数字化赋能专项行动方案)Encourage SMEs to use cloud.Guide digital service providers to launch cloud manufacturing platforms and cloud service platforms fo

239、r SMEs.Support SMEs equipment and business systems migrate to the cloud,help SMEs obtain resources and application services from the cloud,and meet the cloud demands of SMEs business systems such as R&D,manufacturing,business management,marketing,etc.Source:Government official sites,Guotai Junan Int

240、ernational.See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kingdee International(00268 HK)Company Report 5.Key Risks 1)Intensified competition:If competition in the market with other vendors(such as Yonyou Network and Inspur)intensifies,it

241、will affect the Companys access to new customers or face the loss of old customers,and it may also exert downward pressure on the Companys gross profit margin.2)Cloud service R&D may not be as expected:Because cloud products such as Cosmic and Constellation require a large amount of R&D resources,fa

242、ilure to develop products or functions that can solve customer issues will affect the acquisition of new customers or cause the loss of old customers or subscription degradation.Also,continuous and heavy R&D investment will put profit under pressure in the short term.3)Localization substitution may

243、not be as expected:The Companys sales expense rate is at a relatively high level among similar companies.If the Company cannot obtain enough large state-owned enterprise customers as expected to improve sales efficiency,it will exert great pressure on profits.4)Downstream customers may cut back on I

244、T spending:Due to the recent uncertainties in the macroeconomy and geopolitical issues,the profitability of downstream customers may be negatively affected,thus reducing investment in IT,leading to loss of old customers or downgraded subscriptions.5)The implementation of supportive policies of ITAI

245、may not be as expected:The implementation of ITAI-related policies is mainly dependent on the governments decisions,with many influencing factors,and thereby it is difficult for the Company to control.See the last page for disclaimer Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_Pa

246、geHeader Kingdee International(00268 HK)Company Report Financial Statements and Ratios Table_IncomeStatement Income Statement Year end 31 Dec(RMB m)2020A 2021A 2022F 2023F 2024F Revenue-Cloud 1,912 2,758 3,880 5,366 7,124 Revenue-ERP 1,444 1,416 1,156 930 741 Total Revenue 3,356 4,174 5,036 6,296 7,

247、864 Cost of sales(1,147)(1,541)(1,914)(2,298)(2,792)Gross profit 2,209 2,634 3,122 3,998 5,072 Selling and marketing expenses(1,425)(1,741)(2,055)(2,487)(3,012)Administrative expenses(414)(466)(504)(504)(550)Net impairment losses on financial assets and contract assets(70)(79)(91)(95)(98)R&D costs(9

248、84)(1,185)(1,410)(1,700)(2,045)Fair value gains on investment properties 6 4 3 3 3 Operating Profit(415)(467)(546)(366)(169)Finance income 49 82 100 116 127 Finance costs(13)(5)(4)(4)(4)Share of profits/(losses)of associates(3)8 9 10 10 Profit Before Tax(383)(382)(441)(244)(35)Income Tax 41 44 44 24

249、 3 profit After Tax(342)(338)(397)(219)(31)Non-controlling Interest 6 36 20 11 2 Shareholders Profit/Loss(335)(302)(377)(208)(30)Basic EPS(0.101)(0.092)(0.115)(0.064)(0.009)Cash Flow Statement Year end 31 Dec(RMB m)2020A 2021A 2022F 2023F 2024F Profit before tax(383)(382)(441)(244)(35)D&A 493 439 63

250、1 606 617 Net finance income(36)(76)(95)(112)(124)Others 5(5)1,026 639 501 Change in working capital 364 560 845 1,073 1,164 Interest paid(13)(6)(7)(6)(6)Tax paid(14)(7)0 0 0 Cash from Operating Activities 473 661 2,036 2,140 2,192 Payments for PPE(43)(323)(217)(81)(60)Payments for intangible assets

251、(310)(449)(436)(480)(552)Others(1,138)(433)(1,170)(1,258)(886)Cash from Investing Activities(1,491)(1,205)(1,823)(1,819)(1,497)Proceeds from borrowings 120 0 3 0 0 Repayments of borrowings(200)(120)0 0 0 Others 2,045(24)8 7 7 Cash from Financing Activities 1,966(144)11 7 7 Net Changes in Cash 948(68

252、8)223 327 702 Cash at Beg of Year 1,899 2,754 2,047 2,250 2,557 FX change(93)(19)(20)(21)(22)Cash at End of Year 2,754 2,047 2,250 2,557 3,237 Source:the Company,Guotai Junan International.Table_BalanceSheet Balance Sheet Year end 31 Dec(RMB m)2020A 2021A 2022F 2023F 2024F Right-of-use assets 182 20

253、8 215 221 228 PPE 746 1,045 1,325 1,433 1,534 Intangible assets 786 1,037 955 957 1,030 Investment properties 1,651 1,538 1,414 1,278 1,128 Financial assets at FVTPL 623 958 1,006 1,106 1,328 Others 551 1,829 2,399 3,125 3,352 Total Non-current Assets 4,539 6,616 7,313 8,120 8,599 Inventories 19 30

254、34 38 42 Trade receivables 334 392 431 474 522 Loans to third parties 317 305 336 370 406 Financial assets at fair value through profit or loss 994 748 449 404 484 Cash&Cash Equivalents 2,754 2,047 2,250 2,557 3,237 Others 1,767 949 1,426 1,896 2,529 Total Current Assets 6,183 4,471 4,926 5,738 7,22

255、0 Total Assets 10,722 11,087 12,239 13,858 15,819 Trade and other payables 795 759 683 615 553 Contract liabilities 1,484 2,165 3,247 4,546 5,910 Deferred income 132 116 105 94 85 Others 188 44 48 51 53 Total Current Liabilities 2,599 3,084 4,083 5,306 6,601 Lease liabilities 22 54 43 35 28 Deferred

256、 income tax liabilities 143 146 117 93 84 Total Non-current Liabilities 165 200 160 128 112 Total Liabilities 2,764 3,284 4,243 5,434 6,713 Share capital 83 83 83 83 83 Share premium account 5,053 5,149 5,664 6,231 6,854 Retained earnings 1,922 1,619 1,242 1,034 1,004 Other reserves 732 744 819 900

257、991 Total Shareholders Equity 7,790 7,596 7,809 8,249 8,932 Minority Interest 169 207 187 176 174 Total Equity 7,958 7,803 7,995 8,424 9,106 Financial Ratios 2020A 2021A 2022F 2023F 2024F Gross profit margin(%)80.4 65.8 63.1 62.0 63.5 Operating profit margin(%)(12.4)(11.2)(10.8)(5.8)(2.1)Net profit

258、margin(%)(10.0)(7.2)(7.5)(3.3)(0.4)ROA(%)(3.5)(2.8)(3.2)(1.6)(0.2)ROE(%)(4.9)(3.9)(4.9)(2.6)(0.3)Current ratio(x)2.4 1.4 1.2 1.1 1.1 Quick ratio(x)2.4 1.4 1.2 1.1 1.1 Debt to equity ratio(%)0.3 0.4 0.5 0.6 0.7 Net gearing(%)Net Cash Net Cash Net Cash Net Cash Net Cash See the last page for disclaime

259、r Page 11 November 2022 Kingdee International 金蝶国际(00268 HK)Table_PageHeader Kingdee International(00268 HK)Company Report Company Rating Definition The Benchmark:Hong Kong Hang Seng Index Time Horizon:6 to 18 months Rating Definition Buy 买入 Relative Performance15%;or the fundamental outlook of the

260、Company or sector is favorable.Accumulate 收集 Relative Performance is 5%to 15%;or the fundamental outlook of the Company or sector is favorable.Neutral 中性 Relative Performance is-5%to 5%;or the fundamental outlook of the Company or sector is neutral.Reduce 减持 Relative Performance is-5%to-15%;or the f

261、undamental outlook of the Company or sector is unfavorable.Sell 卖出 Relative Performance 5%;or the fundamental outlook of the sector is favorable.Neutral 中性 Relative Performance is-5%to 5%;or the fundamental outlook of the sector is neutral.Underperform 跑输大市 Relative Performance-5%;Or the fundamental

262、 outlook of the sector is unfavorable.DISCLOSURE OF INTERESTS(1)The Analysts and their associates do not serve as an officer of the issuer mentioned in this Research Report.(2)The Analysts and their associates do not have any financial interests in relation to the issuer mentioned in this Research R

263、eport.(3)Except for LUZHOU BANK(01983 HK),SF REIT(02191 HK),JINSHANG BANK(02558 HK),BANKOFZHENGZHOU(06196 HK),XPENG(09868 HK),Guotai Junan and its group companies do not hold equal to or more than 1%of the market capitalization of the issuer mentioned in this Research Report.(4)Guotai Junan and its

264、group companies have not had investment banking relationships with the issuer mentioned in this Research Report within the preceding 12 months.(5)Guotai Junan and its group companies are not making a market in the securities in respect of the issuer mentioned in this Research Report.(6)Guotai Junan

265、and its group companies have not employed an individual serving as an officer of the issuer mentioned in this Research Report.There is no officer of the issuer mentioned in this Research Report associated with Guotai Junan and its group companies.DISCLAIMER This Research Report does not constitute a

266、n invitation or offer to acquire,purchase or subscribe for securities by Guotai Junan Securities(Hong Kong)Limited(Guotai Junan).Guotai Junan and its group companies may do business that relates to companies covered in research reports,including investment banking,investment services,etc.(for exampl

267、e,the placing agent,lead manager,sponsor,underwriter or invest proprietarily).Any opinions expressed in this report may differ or be contrary to opinions or investment strategies expressed orally or in written form by sales persons,dealers and other professional executives of Guotai Junan group of c

268、ompanies.Any opinions expressed in this report may differ or be contrary to opinions or investment decisions made by the asset management and investment banking groups of Guotai Junan.Though best effort has been made to ensure the accuracy of the information and data contained in this Research Repor

269、t,Guotai Junan does not guarantee the accuracy and completeness of the information and data herein.This Research Report may contain some forward-looking estimates and forecasts derived from the assumptions of the future political and economic conditions with inherently unpredictable and mutable situ

270、ation,so uncertainty may contain.Investors should understand and comprehend the investment objectives and its related risks,and where necessary consult their own financial advisers prior to any investment decision.This Research Report is not directed at,or intended for distribution to or use by,any

271、person or entity who is a citizen or resident of or located in any jurisdiction where such distribution,publication,availability or use would be contrary to applicable law or regulation or which would subject Guotai Junan and its group companies to any registration or licensing requirement within such jurisdiction.2022 Guotai Junan Securities(Hong Kong)Limited.All Rights Reserved.27/F.,Low Block,Grand Millennium Plaza,181 Queens Road Central,Hong Kong.Tel.:(852)2509-9118 Fax:(852)2509-7793 Website:.hk