Kingdee International's stock plummeted 5.28% during intraday trading on Friday, as investors reacted to the company's full-year financial results.

The decline came despite the company reporting a return to profitability, with revenue growing approximately 12% year-over-year and improved gross margins. However, market participants expressed concerns over stretched valuations, with earnings per share remaining low and resulting in a high trailing price-to-earnings ratio, indicating thin profitability relative to the current share price.

The company's cloud service revenue continued to show strong growth, and management demonstrated confidence through a recent share repurchase. Nevertheless, the elevated valuation metrics appear to have prompted profit-taking and a reassessment of the stock's price level.