CHINA Looking to Rise Up - Analyst Blog
With a strong track record in consolidation and organic growth of its software business, we believe
CDC Corporation (
CHINA) is poised for growth. With continuous focus on vertical industries and cost reduction initiatives in its software segment, CDC should develop a significant competitive advantage in this year and beyond.
New launches and upgrades (Yulgang 2.0 and Ross Enterprise v6.3) in its product line as well as its share repurchase plan currently in action will further help the company drive growth. As such, we maintain our Buy rating on the shares of CDC with a six-month target price of $3.50.
We remain encouraged by the growing potential of CDC's two primary business units - CDC Software and CDC Games. The Software business is the most important business segment for CDC, which is growing organically and through acquisitions, and is currently building momentum in its strategic vertical industries. CDC is a leading global provider of enterprise software solutions and services to medium and large enterprises.
Anita Mohata contributed to this report.
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