Glonghui, January 9 | Bank of America Securities released a report saying that Kingdee International expects revenue of about 5.65 billion yuan to 5.7 billion yuan for the 2023 fiscal year, which means a year-on-year increase of 16% to 17%, and the net loss forecast narrows by 36% to 56%, to between 170 million and 250 million yuan. The report mentioned that the Group's revenue was generally in line with the market and the forecast, and the loss was less than expected. The Group's annual recurring revenue (ARR) for the 2023 fiscal year will increase by 33% to 2.85 billion yuan, below its target level of 5%. However, the bank believes that the impact will be partially offset by better-than-expected profit and loss performance and operating cash flow. Considering macroeconomic weakness, the bank lowered the Group's revenue forecast for the 2023-25 fiscal year by 2% to 3%, but raised the net loss forecast to reflect better cost savings. The target price was lowered from HK$18.5 to HK$16.5, reaffirming the “buy” rating. The bank said that in the middle of the fiscal year, Kingdee International's profit forecast meant that its revenue for the second half of fiscal year 2023 increased 16.5% year-on-year, reversed losses and earned 74 million yuan in the second half of the year, eroding 33 million yuan compared to the same period of the previous fiscal year, and the net profit margin improved 3.6 percentage points year-on-year. In addition, the company's operating cash flow for the full year of last year is expected to increase 68% to 79% year-on-year, reaching 630 million to 670 million yuan. The bank expects the Group's gross margin to improve slightly in FY2023, and revenue growth is expected to accelerate in FY2024.