The Zhitong Finance App learned that Kingdee International (00268) rose more than 8% in early trading. As of press release, it rose 4.13% to HK$8.955, with a turnover of HK$116 million.

According to the news, Kingdee International recently announced that the contract amount for AI native products reached 1.02 billion yuan in the first three quarters; the ARR subscription at the end of September was about 4.604 billion yuan, an increase of about 19.3% year on year; and the net increase in ARR in the third quarter was about 46.9% year on year. The net renewal rates (NDR) for Kingdee AI Xinghan, Kingdee AI Starry Sky, and Kingdee AI Star were 101%, 97%, and 95%, respectively.

GF Securities pointed out that the rapid increase in the company's net addition of ARR in a single quarter in the third quarter further proved the high demand brought about after AI was connected, and we judge that this growth trend is expected to continue. Furthermore, starting from industry rules, a high renewal rate is an important indicator of the healthy development of cloud services. It mainly reflects the overall competitiveness of the company's cloud products. The high renewal rate also lays the foundation for future corporate expenses, especially sales expenses, to continue to decline. What is particularly noteworthy is that the company maintains a high NDR, and we determine that in addition to improving the quality of main business operations, it is also benefiting from increased customer repurchases driven by AI applications.

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