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<Research>CLSA Lowers KINGSOFT's TP to HKD37.8; Pressure Expected Across Biz Profits
Recommend 17 Positive 25 Negative 14 |
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KINGSOFT (03888.HK)'s 2Q25 game revenue and profit missed expectations, and its 2H25 gaming business outlook is facing challenges, CLSA said in its research report. KINGSOFT OFFICE (688111.SH)'s enterprise-end (2B) revenue growth accelerated, WPS365 performed steadily, and traditional software business moved forward, but its personal-end (2C) revenue slowed down. At the same time, KINGSOFT CLOUD (03896.HK) (KC.US) maintained robust revenue, particularly with outstanding performance in its AI-related business. In CLSA's opinion, profits across Kingsoft's various businesses are under pressure, with the gaming business experiencing negative operating leverage, the software business expanding manpower in AI and overseas markets, and the cloud business widening the proportion of rented servers. Consequently, the broker has adjusted its earnings forecasts for the three Kingsoft companies. CLSA cut KINGSOFT's target price from HKD38.4 to HKD37.8 but raised Kingsoft Cloud's from USD17.3 to USD17.7. KINGSOFT OFFICE's target price remained at RMB375. All of them were rated as Outperform. AAStocks Financial News |
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