Last week, you might have seen that Kingdee International Software Group Company Limited (HKG:268) released its half-yearly result to the market. The early response was not positive, with shares down 7.5% to HK$7.86 in the past week. Kingdee International Software Group reported in line with analyst predictions, delivering revenues of CN¥3.6b and statutory earnings per share of CN¥0.026, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the consensus forecast from Kingdee International Software Group's 16 analysts is for revenues of CN¥7.97b in 2026. This reflects a satisfactory 7.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 70% to CN¥0.12. In the lead-up to this report, the analysts had been modelling revenues of CN¥7.95b and earnings per share (EPS) of CN¥0.12 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
Check out our latest analysis for Kingdee International Software Group
The average the analysts price target fell 7.9% to HK$13.80, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Kingdee International Software Group analyst has a price target of HK$19.95 per share, while the most pessimistic values it at HK$10.48. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Kingdee International Software Group'shistorical trends, as the 15% annualised revenue growth to the end of 2026 is roughly in line with the 13% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 29% annually. So it's pretty clear that Kingdee International Software Group is expected to grow slower than similar companies in the same industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Kingdee International Software Group following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Kingdee International Software Group's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Kingdee International Software Group's future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Kingdee International Software Group analysts - going out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Kingdee International Software Group .
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.