The Zhitong Finance App learned that Citi released a research report stating that it maintains the Kingdee International (00268) “buy” rating, with a target price of HK$11.9. The company's “AI Priority, Subscription Priority, and Globalization” strategy continued to advance. The annual recurring revenue (ARR) of subscriptions in the third quarter increased by about 19.3% year over year to RMB 4.604 billion, and the net increase in ARR increased 46.9% year over year to RMB 191 million, mainly driven by strong demand for Kingdee's AI kit and Lingji.

In the first three quarters of 2026, Kingdee's total AI native product contracts reached RMB 1,002 billion, reaching the company's annual AI native revenue guideline of RMB 1 billion, reflecting an increase in the willingness of enterprise customers to pay for embedded AI solutions.

The net dollar retention rates of the three AI+SaaS product lines were divided. Among them, AI Starlight, AI Starry Sky, and AI Star were 101%, 97%, and 95%, respectively. Citi pointed out that the expansion performance of large enterprise customers is stronger than that of small and medium-sized enterprises. Kingdee received new contracts from CRRC (01766), Changan Automobile (000625.SZ), Everbright Group, and Huazhu Group-S (01179) during the period, reflecting that business cooperation continues to penetrate large and well-known customers.

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