Despite short-term uncertainties, Kingdee is expected to remain one of the key beneficiaries of IT industry development in China. We believe that the Company will continue to deliver solid growth, given its share gain in the large enterprise market and new product launches. We factored in higher losses for 2022F and 2023F, given higher expenses, including sales marketing and RD. We maintain our ADD rating despite factoring in a higher net loss for 2021F and 2022F. We set a target price of HK$26.96 based on a 2022F P/S target of 15x. The downward revision is mainly due to the adoption of a lower P/S target (from 25x to 15x).