HK-listed Kingdee hits near 6-month low on weak H1 forecast

Kingdee International Software Co

08/07/2019 04:10

** Shares of Kingdee International Software Group Co Ltd
 0268.HK  plunge as much as 16.5% to HK$6.66, their lowest since
Jan 15
    ** Stock down after the enterprise resource planning (ERP)
services provider said it expects a sharp drop in first-half
earnings 
    ** Stock ranks the fourth-most actively traded shares in
early trade 
    ** The Guangdong-based company expects to post a 30-50% drop
in its first-half net profit, while revenue is expected to rise
15-20% with revenue from cloud services to increase by 50-60%
over the same period in 2018  urn:newsml:reuters.com:*:nFWN2450IN
    ** Profit under pressure as co accelerated in its execution
of cloud transformation strategies and increased strategic input
in development of Kingdee Cloud Cosmic business - Kingdee 
    ** Co says it will continue its execution of cloud
transformation strategies, and the management has full
confidence in the firm's long-term development
    ** As of Friday's close, stock up 15.3% so far this year
    ** Kingdee has underperformed the Hang Seng Commerce &
Industry Index sector  .HSNC  by 11.3 percentage points in the
past one month
    ** The Hong Kong Hang Seng Commerce & Industry Index  .HSNC 
falls 2.1%
    ** The Hang Seng China enterprises index  .HSCE  and the
benchmark index  .HSI  both decline 1.8%

 (Reuters Messaging: donny.kwok.thomsonreuters.com@reuters.net)