According to a research report published in Lyon, Kingdee International's annual recurring revenue for subscription services in the third quarter ended at the end of September increased 19.3% year over year to 4.604 billion yuan, and the net increase in ARR in the third quarter rose 46.9% year on year, driven by strong demand for Kingdee's AI kit and Lingji. The bank pointed out that the value of Kingdee's AI native contract for the first three quarters of this year reached 1.02 billion yuan, which meant an increase of about 397 million yuan in the third quarter, up from 375 million yuan in the second quarter and 230 million yuan in the first quarter, reflecting that the company's AI native products are bringing in incremental recurring revenue, while the current main subscription service business continues to grow healthily. The bank reiterated its “outperforming the market” rating, with a target price of HK$12.6.

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