Kingsoft 3888

[winston]

not vested

<Research>UOB Kay Hian Cuts KINGSOFT's TP to HKD47; 1Q25 Results Miss

KINGSOFT (03888.HK)'s 1Q25 results were below expectations, with revenue growing by 9.4% YoY (6% lower than the market forecast), though its GPM was in line with expectations with a 1 ppt increase to 82.1%, according to UOB Kay Hian's research report.

The company also recorded a net profit remaining flat YoY during the period, while its net profit margin decreased by 1 ppt to 12.1%.

Expecting a slowdown in KINGSOFT's cloud revenue growth but good progress in AI development to offset the impact of slowed growth, UOB Kay Hian maintained a cautiously optimistic attitude towards the company.

The broker cut its target price from HKD55 to HKD47, with a Buy rating remaining in place.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

not vested

Kingsoft Corp (3888 HK)

1Q25: Earnings Miss Expectations; Intact AI Progress; Solid Game Pipeline Kingsoft’s

1Q25 results missed expectations.

Revenue grew 9.4% yoy to Rmb2.3b, 6.0% below consensus estimates.

Gross margin rose 1ppt yoy to 82.1%, in line with consensus and our expectations.

Operating profit remained flattish yoy at Rmb601m, while operating margin shrank 2.4ppt yoy to 26%, dampened by subdued revenue growth.

Net profit remained flattish yoy at Rmb284m, with net profit margin dipping 1ppt yoy to 12.1%.

Maintain BUY with a lower target price of HK$47.00.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

<Research>CLSA Trims KINGSOFT TP to HKD47.4, Cuts Rev. & Profit Forecasts

CLSA released a research report, covering KINGSOFT (03888.HK), which met revenue forecast for 1Q25, but profit missed, primarily due to increased S&M on upcoming Mecha Break, which was delayed until summer, resulting in reduced gaming revenue for the group this year.

However, the broker remained optimistic about its performance post-launch.

Furthermore, the company is developing a multilingual version of WPS and establishing an overseas team and S&M strategy, expected to be completed by June.

The broker revised down the group's revenue and net profit forecasts for 2025 by approximately 4% and 15%, respectively, and lowered the target price from HKD57.8 to HKD47.4, maintaining a High Conviction Outperform rating.

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

not vested

<Research>HSBC Research Cuts KINGSOFT (03888.HK) TP to HK$38.5, Maintains Hold Rating

2025/05/30

HSBC Global Research released a report, covering KINGSOFT (03888.HK), which performed way worse than expectations in 1Q25.

Revenue grew 9% YoY but dropped 16% QoQ, falling 7% short of market expectations.

The 1Q25 net profit remained flat YoY but decreased 38% QoQ, 24% below market expectations.

The broker remained cautious about the company's outlook for 2Q25, chopping the target price from HK$42.7 to HK$38.5, while maintaining a Hold rating.

Kingsoft Software's growth in gaming and office businesses eased evidently in 1Q25, with YoY growth of 14% and 6%, vs 26% and 17% in 4Q24.

Kingsoft Software attributed the quarterly decline in gaming business to reduced commercial content updates for “Fate of Sword 3”, while the office business was affected by a slide in WPS software revenue.

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news