Shares of Kingdee International Software Group (HKG:268) plunged 5.01% in Thursday's intraday trading, as investors reacted to the company's disappointing annual results and subsequent analyst downgrades. The sharp decline comes after the software firm fell short of expectations in its recently released financial report.

Kingdee's annual results, unveiled last week, showed revenues of CN¥6.3 billion, slightly below analyst projections. More concerningly, the company reported a statutory loss of CN¥0.04 per share, which was 95% larger than analysts had anticipated. In response to these results, financial analysts have trimmed their forecasts for Kingdee's performance in the coming year, contributing to the negative sentiment surrounding the stock.

Looking ahead, analysts now expect Kingdee to generate revenues of CN¥7.10 billion in 2025, representing a 13% year-over-year increase. While the company is projected to return to profitability with earnings of CN¥0.047 per share, these estimates have been revised downward from previous forecasts. Moreover, Kingdee's expected revenue growth rate lags behind the industry average of 19%, suggesting potential challenges in maintaining market share. Despite these concerns, some analysts remain optimistic, with the average price target for Kingdee actually climbing 37% to HK$15.76, indicating a belief in the company's long-term potential despite near-term headwinds.