Kingdee International Software Group Company Limited (0268.HK) stock analysis

In our weekly check, Kingdee International Software Group Company Limited is graded B (A to F). Of 23 checks on debt, profit, cash flow and trend: 16 pass, warnings: 2, red flags: 5.

About Kingdee International Software Group Company Limited

Kingdee International Software Group Company Limited is a Technology company (Software - Application) based in China, listed on HKSE as 0268.HK.

What our checks show for 0268.HK

Red flags

• Operating profit does not cover the interest bill (-6.1x): interest is paid from cash or new debt.
• The net margin is only 1.3%: little room if costs rise.
• The price swings a lot: 59.8% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 86% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 1%.

Warning signs

• Earnings per share fell 37.9% a year over the last 3 years.
• The stock is still below its previous peak.

Strengths

• Debt is low: 0.11x equity.
• The net margin rose by 8.6 points over 5 years, to 1.3%.
• The gross margin is 67.1% and has risen by 4.1 points: pricing power is holding.
• Operating cash flow is 11.81x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 133% a year over the next years.
• Analysts expect revenue to grow about 19.9% a year over the next years.

Similar companies

3888.HK · ZM · DSY.PA · NBIS · PTC

Questions

What grade does Kingdee International Software Group Company Limited (0268.HK) have?

In our weekly check, Kingdee International Software Group Company Limited is graded B (A to F). Of 23 checks on debt, profit, cash flow and trend: 16 pass, warnings: 2, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 0268.HK stock?

This week's biggest flags for Kingdee International Software Group Company Limited: Weak interest cover, Thin margins, Very volatile. In total 7 of 23 checks show a warning or a red flag.

What does Kingdee International Software Group Company Limited do?

Kingdee International Software Group Company Limited is a Technology company (Software - Application) based in China, listed on HKSE as 0268.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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