CICC Securities downgraded its net profit forecast for Kingsoft Software (03888) for 2024 and 2025 by 4% and 10%, respectively.
Zhixin Securities released a research report and maintained its 'outperform the market' rating on Kingsoft Software (03888). It downgraded the company's net profit forecast for 2024 and 2025 by 4% and 10%, respectively, reflecting the pressure faced by software companies in a weak macro environment. The target price was lowered from HKD 35 to HKD 32, a decrease of 8.6%. The bank is more optimistic about Kingsoft Software because of its strong game business.
The bank pointed out that Kingsoft Software's performance in the second quarter of 2024 is expected to be mainly driven by strong game performance, despite weak software business. Total revenue is expected to increase by 14% year-on-year to RMB 2.5 billion, with net profit increasing by 80% year-on-year. Game revenue may increase by 16% year-on-year. The management's guidance is for a 10% increase in game revenue for the 2024 fiscal year.