The report believes that Kingsoft Software (03888) strong growth momentum can continue in the second half of the year.
According to the research report released by Lyon, it maintains the "outperform" rating for Kingsoft Software (03888), considering that the company's business remains resilient under the weak macroeconomy. Due to changes in earnings forecasts, the target price has been lowered from HKD 32 to HKD 29.5.
The report states that Kingsoft Software's performance in the second quarter of this year was mixed, with game revenue exceeding expectations with a YoY growth of 20%, indicating that the strong growth momentum can continue in the second half of the year. However, revenue from office software and service business in the period was lower than expected, with only a 6% YoY increase. Nevertheless, the inflow of operating cash from individual users and enterprise users continues to grow, and it is expected to translate into revenue growth in the third quarter.
