[ET Net News Agency, 21 August 2019] Jefferies Research lowered its target price for
Kingsoft Corporation (03888) to HK$18 from HK$20.4 and maintained its "buy" rating.
The research house said Kingsoft's 2Q results were behind its estimates on softer online
games and impairment charges. Jefferies expects online games revenue to remain soft before
the revamp of its highly anticipated title JX Online III mobile while WPS and cloud remain
resilient. It expects Kingsoft to incur losses in 2019 due to soft gaming outlook in 2H.
Jefferies lowered its non-GAAP earnings estimates in 2019-21 factoring the recent
business developments. (KL)