[ET Net News Agency, 6 August 2019] Jefferies Research initiated coverage on Kingsoft
Corporation (03888) with a target price of HK$20.4 and a "buy" rating.
The research house believes the market has factored in the release of JX Online III
mobile game since its launch in June and consider the other two segments - Cloud and WPS -
should enjoy rapid long-term growth, with Cloud industry being in an early stage, and WPS'
low paying ratio.
Kingsoft has over 30 years of operating history with a strong game franchise in JX
Online from its Westhouse game studio. Jefferies sees fundamentals improving in 2H on
its new game launches. It expects profitability in 2H to be driven by the debut of JX
Online III mobile game in June. In 2019, Jefferies estimated total revenue to grow 44% to
RMB8.5bn, with online games growing 25% YoY, Cloud 71% YoY and WPS 35% YoY. It expects
Kingsoft to generate a slight operating profit in 2Q 2019 as JX III was only launched in
mid-June. (KL)
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03888 KINGSOFT
Nominal 
26.000 +0.850 (+3.380%) Others
06/08/2019 14:55
{I-bank focus}Jefferies starts Kingsoft (03888) at HK$20.4
| Remark: | Real time quote last updated: 26/04/2024 14:43 |
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