Dec. 20 (Bloomberg) -- Kingdee International Software Group Co., a Chinese business solutions software provider, plunged to a 19-month low in Hong Kong trading on concern that it may lose orders from small-and medium-sized companies because of a global economic slowdown.
Kingdee dropped 10 percent to HK$1.86, the lowest level since May 26, 2010, on the city’s stock exchange. The stock has fallen 49 percent this year, compared with a 22 percent decline in the benchmark Hang Seng Index.
Profit growth may slow for the Shenzhen-based company as demand for its software eases from China’s smaller businesses hurt by weaker sales to overseas customers, according to Johnie Hu, an analyst at BOC International Group. China’s exports grew 13.8 percent in November, the weakest pace since 2009, excluding aberrations caused by the lunar new year holidays.
“Kingdee is affected by the poor macroeconomic environment,” Hu said in a phone interview today. The company’s earnings outlook has will face “low visibility” in the first half of 2012, she said.
Hu cut the stock’s rating to “hold” from “buy” on Dec. 16.
Kingdee’s profit for the six months ended June 30 rose 43 percent to 127 million yuan ($20 million).
--Editors: Stanley James, Frank Longid
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