[ET Net News Agency, 20 November 2020] CCB International Securities (CCBIS) raised its
target price for Kingsoft Corporation (03888) to HK$48.8 from HK$45.5 and maintained its
"outperform" rating.
The research house said Kingsoft's operating profit rose 120% YoY or fell 34% QoQ in 3Q
to RMB361m on a strong performance by JX Online 3 and solid WPS growth.
CCBIS remains positive on the long term growth outlook of the WPS business and expects
38% CAGR in 2020-22 on the back of (1) strong user growth, (2) recovery of licensing and
cloud services sales to enterprises and the government post-COVID-19, and (3) robust
personal subscription services with innovative content and rich features.
CCBIS raised its 2021-22 non-GAAP profit forecasts by 9-22% to reflect higher margin
assumptions for WPS and less loss from Kingsoft Cloud. (KL)