[ET Net News Agency, 19 August 2020] Goldman Sachs lifted its target price for Kingsoft
Corporation (03888) to HK$46 from HK$31 and maintained its "buy" rating.
The research house said Kingsoft reported better-than-expected 2Q results. Total revenue
of Rmb1.42bn (+49%) was 3% ahead of Goldman's estimates.
Into 2H, Goldman expects continued momentum of online game growth at 31%/25% in 3Q/4Q,
underpinned by robust performance of existing titles as well as a strong pipeline with the
monthly mobile game/expansion pack release.
Factoring in strong online game momentum and improved operating leverage of the office
software business, Goldman increased its 2020-22 revenue by 9%, mostly on higher revenue
from online games, and net income (from continuing operations) by 11%/31%/31% due to op
leverage from both gaming and office software. (KL)