[ET Net News Agency, 26 August 2019] Goldman Sachs lowered its target price for
Kingsoft Corporation (03888) to HK$18.8 from HK$24 and maintained its "buy" rating.
The research house said both Kingsoft's 2Q revenue and diluted EPS missed, due to weaker
online games revenue and impairment provision related to investment in Cheetah Mobile.
Cloud services and office software segments saw another quarter of strong revenue growth.
The company revised down online games growth guidance sharply from growth of 20%-25% to
decline of 10%, with a large potential impact on profitability because game revenue has
high margins.
Goldman revised down its 2019/20/21 revenue estimates by 10%/9%/7%, reflecting lower
guidance and weaker online games revenue caused by delayed game launch schedule, partly
offset by better cloud services revenue based on a solid performance in 2Q. (KL)
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03888 KINGSOFT
Nominal 
26.100 +0.950 (+3.777%) Others
27/08/2019 09:14
{I-bank focus}Goldman trims Kingsoft Corp (03888) to HK$18.8
| Remark: | Real time quote last updated: 26/04/2024 18:00 |
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