GLONGHUI, May 27 | CCB International published a research report saying that Jinshan Software's revenue for the first quarter of fiscal year 2024 was basically in line with expectations. As for the adjusted net profit, which rose 40% year on year, it exceeded expectations, mainly due to improvements in the company's operating leverage and losses from associated companies falling short of expectations. The bank expects the game business of Jinshan Software to accelerate again in the second quarter of this year and raise the forecast for the 2024 game business growth from 5% to 12%. As for the office business, the company launched WPS 365 in April this year to provide customers with a one-stop artificial intelligence office solution. The bank believes that the above products will increase customers' willingness to pay and drive average revenue (ARPPU) for paying users. At the same time, it is estimated that the price war between mainland Big Language Model (LLM) developers may benefit Jinshan Software and reduce its artificial intelligence costs. In addition, CCB International raised Jinshan Software's profit forecast for the 2024-2026 fiscal year by 8% to 22% to take into account factors such as improved profits in the first quarter of this year, improved operating leverage, and narrowing of associated companies' losses. The bank raised the target price of Jinshan Software from HK$31.6 to HK$32.5, maintaining the “outperforming the market” rating.