Jingu Financial News | Kingsoft (03888) continued its morning rally in the afternoon, gaining momentum. As of the time of publication, it has risen by 4.41%, reaching HK$21.3.
According to a research report released by Lyon, Kingsoft's performance in the second quarter was mixed. Game revenue grew by 20% year-on-year, exceeding expectations, and it is believed that the strong growth momentum can continue in the second half of the year. However, revenue from office software and service business fell short of expectations, with a year-on-year increase of only 6%. However, operating cash inflows from individual users and corporate users continued to grow, which is expected to translate into third-quarter revenue growth. The "outperform the market" rating is maintained, considering that the company's business remains resilient despite the macroeconomic downturn. In response to changes in earnings forecasts, the target price has been lowered from HK$32 to HK$29.5.