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Estimated Discount To Fair Value: 14.3%

XD is trading at HK$34.75, below its estimated fair value of HK$40.54, highlighting potential undervaluation based on discounted cash flows. The company has become profitable this year, with earnings forecast to grow significantly at 52.1% annually over the next three years, outpacing the Hong Kong market's growth rate. However, revenue growth is expected to be moderate at 15.2% per year but still above the market average of 7.8%.

• Our expertly prepared growth report on XD implies its future financial outlook may be stronger than recent results.

• Take a closer look at XD's balance sheet health here in our report.

Kingdee International Software Group

Overview: Kingdee International Software Group Company Limited is an investment holding company focused on enterprise resource planning, with a market cap of HK$53.34 billion.

Operations: The company generates revenue primarily from its Cloud Service Business, contributing CN¥4.86 billion, and its ERP Business and Others segment, which accounts for CN¥1.13 billion.

Estimated Discount To Fair Value: 18.4%

Kingdee International Software Group is trading at HK$14.3, below its estimated fair value of HK$17.52, suggesting potential undervaluation based on discounted cash flows. While revenue growth is forecast at 14.5% annually—slower than 20% but above the Hong Kong market's 7.8%—earnings are expected to grow significantly at 36.51% per year, with profitability anticipated within three years despite a low future return on equity of 3.8%.

• Our growth report here indicates Kingdee International Software Group may be poised for an improving outlook.

• Click here to discover the nuances of Kingdee International Software Group with our detailed financial health report.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SEHK:1585 SEHK:2400 and SEHK:268.

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