Zhitong Financial APP learned that Ming Yuan Cloud Group (00909) fell more than 5% in early trading and fell 4.89% to HK $25.3 as of press time, with a turnover of HK $34.2617 million.
On the news, Daiwa released a research report that expects relevant policies to delay the pace of digitization in the real estate industry and may drag down the growth momentum of Ming Yuan Cloud Group's ERP business from the fourth quarter of this year to the first half of next year. The bank believes that Ming Yuan Cloud Group's current valuation is still attractive, downgrading the rating from "buy" to "outperform the market" and lowering the target price from HK $38 to HK $30.
The bank pointed out that recent macro weakness will also affect SaaS business revenue growth between the fourth quarter of this year and the first half of next year, but the outlook for SaaS business growth is expected to be generally positive from the second half of next year to 2023, given strong private sector demand.