According to the Zhito Finance APP, Morgan Stanley released a research report indicating that KINGSOFT's (03888) game business performs strongly, and the renewed partnership between Kingsoft Cloud and Xiaomi brings significant upward potential for the market expectations of KINGSOFT. The bank reaffirms KINGSOFT's 'Shareholding' rating and raises the Target Price from 36 HKD to 41 HKD.

Morgan Stanley pointed out that both gaming and cloud services are boosting earnings expectations, raising KINGSOFT's earnings per share forecast for 2025 and 2026 by 6% each, which is 16% and 18% higher than market forecasts respectively, and considers the current PE estimate of 17 times for 2025 to be attractive.