[ET Net News Agency, 7 November 2019] Nomura raised its target price for Kingsoft
Corporation (03888) to HK$16.5 from HK$13.8 mainly on a higher-than-expected valuation of
WPS and maintained its "reduce" rating.
The research house said WPS is due to be listed on the Sci-Tech Board on 18 November,
with the company offering 101mn shares at CNY45.86/share, implying 41x FY2020 P/E.
While seeing room for the valuation of WPS to rise post-IPO, Nomura believes the impact
on Kingsoft's stock price could be limited, based on YY's experience, when its subsidiary
Huya was listed on 10 May 2018. Huya's stock price rallied significantly in the first two
months post-IPO debut, yet the share performance of parent company YY was largely muted
during that period. (KL)