[ET Net News Agency, 27 January 2021] Citi Research lifted its target price for
Kingsoft Corporation (03888) to HK$78 from HK$57 and maintained its "buy" rating.
Kingsoft will report 4Q 2020 results in late March. The research house modeled RMB1.7bn
of revenue (+15% like-for-like) and RMB227mn of adjusted net profit (13.3% margin). In
terms of revenue mix, Citi forecast -6%/+50% growth of game/WPS. It believes WPS will
become the major growth driver, while the online game remains a cash cow for Kingsoft.
With more government tendering in 2021-22, Citi forecast 48%/42% growth in WPS revenue.
It changed its 2020-22 revenue/adjusted earning by 2%/-16%, 1%/-34%, 4%/-31%. (KL)