Glonghui July 16 | Kingdee International (0268.HK), which plummeted by more than 15% yesterday, fell more than 6%. The low of HK$6.16 hit a new low since February 2019, with a total market capitalization of HK$22.7 billion. According to a research report published by Dama, Kingdee International's revenue is expected to rise 12% year-on-year in the first half of this year, lower than the previous annual annual growth guide of 15% to 20%. At the same time, the Kingdee Cloud subscription service annual recurring revenue (ARR) growth rate is expected to drop by 5 percentage points, which is expected to increase by only 25%, which is lower than the guideline by 30%; mainly due to weak demand from SMEs and lack of resilience in IT budgets, which are dragging down new booking performance, the company's guidance has a downside risk. The bank lowered the target price of Kingdee International from HK$14.6 to HK$10, maintaining an “gain” rating, while predicting that its basic business will outperform its peers.