Core Viewpoint - Kingsoft Software's stock has been on a downward trend, with a significant drop of 4.98% on May 30, reaching a new low of HKD 33.4 per share, resulting in a market capitalization of HKD 46.8 billion [1] Financial Performance - For Q1 2025, Kingsoft Software reported revenue of RMB 2.338 billion, a year-on-year increase of 9% but a quarter-on-quarter decrease of 16% [2] - The net profit for the same period was RMB 284 million, remaining flat year-on-year but down 38% quarter-on-quarter [1][2] - The gross profit margin for Q1 was 82%, up 1 percentage point year-on-year but down 2 percentage points quarter-on-quarter [1] Business Segments - The office software and services segment generated revenue of RMB 1.302 billion, a year-on-year increase of 6%, accounting for 56% of total revenue [4] - The gaming and other businesses segment reported revenue of RMB 1.037 billion, a year-on-year increase of 14%, making up 44% of total revenue [5] Market Reactions - Following the financial report, several institutions downgraded their target prices or ratings for Kingsoft Software, with Daiwa reducing its target price from HKD 55 to HKD 47 due to underwhelming Q1 performance and increased competition in online gaming [4] - The company’s cloud revenue growth has slowed, but progress in AI development is expected to offset some of the slowdown [4] User Growth and Product Development - WPS Office's monthly active devices reached 647 million, a year-on-year increase of 8%, with paid user numbers growing by 17% to 41.7 million [5] - The upcoming game "Limitless Mecha" is set to be officially announced in early June, following a successful global test that attracted over 2.26 million players [8]

Group 1: Financial Performance - In Q1 2025, the company achieved operating revenue of 2.338 billion yuan, a year-over-year increase of 9.41% but a quarter-over-quarter decrease of 16.28% [1] - The net profit attributable to the parent company was 284 million yuan, showing a year-over-year decline of 0.24% and a quarter-over-quarter decrease of 38.32% [1] Group 2: Gaming Business - The gaming segment generated 1.037 billion yuan in revenue, representing a year-over-year increase of 13.71% but a quarter-over-quarter decrease of 19.73%, accounting for 44.33% of total revenue [1] - The revenue growth was primarily driven by existing titles such as "Dust White Zone" and "Jian Wang 3," while the decline was attributed to fewer commercial content releases for "Jian Wang 3" in Q1 [1] - The company anticipates continued long-term operation of existing products and expects the launch of "Jian Wang 3: No Boundaries" in June 2024 to enhance user growth and engagement [1] - The upcoming sci-fi mech shooting game "Limit Break" had a peak concurrent player count of over 317,000 during testing and is scheduled for release in July 2025, which is expected to be a significant breakthrough for the company [1] Group 3: Office Business - The office software and services segment reported revenue of 1.301 billion yuan, with a year-over-year increase of 6.21% but a quarter-over-quarter decrease of 13.30%, making up 55.67% of total revenue [2] - The growth in revenue was mainly due to the performance of WPS Personal and WPS 365, although it was partially offset by a decline in WPS software business [2] - The increase in WPS Personal revenue was driven by strategies focused on enhancing AI active user numbers and rich membership benefits, while WPS 365 growth stemmed from supporting organizational clients in digital office transformation [2] - The decline in WPS software revenue was influenced by new procurement processes in 2025 [2] - The company aims to focus on AI, collaboration, and internationalization, with expectations for rapid growth in overseas WPS Personal business through localized operations and differentiated features [2] Group 4: R&D and Expenses - In Q1 2025, the company's R&D, sales, and management expenses were 828 million, 340 million, and 160 million yuan respectively, with year-over-year increases of 16.14%, 30.30%, and 0.01% [3] - The increase in R&D expenses was primarily due to a rise in employee numbers and AI-related expenditures to support the development of AI and collaboration capabilities [3] - Sales expenses increased year-over-year mainly due to promotions for new games [3] Group 5: Profit Forecast and Investment Rating - The company maintains its previous profit forecast, expecting EPS of 1.33, 1.65, and 1.95 yuan for 2025-2027, corresponding to current PE ratios of 25, 20, and 17 times [3] - The company is optimistic about the steady development of its dual business model and anticipates breakthroughs in new gaming categories and continued implementation of office AI and international expansion [3]

Group 1 - The company's Q1 performance was affected by seasonal factors, with increased R&D spending on AI and new game categories [1][2] - Total revenue in Q1 increased by 9% year-on-year, with gaming and WPS revenues growing by 14% and 6% respectively, but declining by 20% and 13% quarter-on-quarter [1] - Adjusted operating profit in Q1 decreased by 3% year-on-year, primarily due to increased R&D and sales expenses related to WPS AI development and new game launches [1] Group 2 - The gaming business experienced a quarter-on-quarter decline mainly due to seasonal reductions in commercial updates for "Jian Wang 3" [2] - WPS business revenue declined quarter-on-quarter due to the impact of the 2025 procurement process on WPS software [2] - Upcoming game releases include "Jie Xian Ji," which is ranked fifth on the global Steam wishlist and is expected to launch this summer, and "Jian Xia Qian Yuan: Zero," anticipated to launch at the end of May [2]

Investment Rating - The report maintains a "Buy" rating for Kingsoft Corporation (03888.HK) [1] Core Views - The report highlights the importance of the upcoming launch of the game "Limitless Machine" and the company's focus on AI, collaboration, and internationalization in its office software segment [1][8] - Kingsoft's revenue for Q1 2025 was 2.338 billion yuan, showing a year-on-year increase of 9.41% but a quarter-on-quarter decrease of 16.28% [8] - The gaming segment's revenue was 1.037 billion yuan, contributing 44.33% to total revenue, with expectations for continued performance from existing titles and the upcoming launch of "Limitless Machine" [8] - The office software segment generated 1.301 billion yuan, accounting for 55.67% of total revenue, driven by growth in WPS personal and WPS 365 services [8] Financial Projections - Total revenue projections for Kingsoft are as follows: 10.318 billion yuan in 2024, 11.669 billion yuan in 2025, 13.149 billion yuan in 2026, and 14.721 billion yuan in 2027, with year-on-year growth rates of 20.91%, 13.09%, 12.68%, and 11.96% respectively [1] - Net profit projections are 1.552 billion yuan in 2024, 1.867 billion yuan in 2025, 2.304 billion yuan in 2026, and 2.735 billion yuan in 2027, with year-on-year growth rates of 220.94%, 20.32%, 23.41%, and 18.70% respectively [1] - The report forecasts EPS of 1.33 yuan for 2025, 1.65 yuan for 2026, and 1.95 yuan for 2027, corresponding to P/E ratios of 24, 20, and 17 times respectively [1][8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report emphasizes the importance of the upcoming launch of the game "解限机" and the company's focus on AI, collaboration, and internationalization in its office software segment [1][8] - The company is expected to maintain steady growth in its dual business segments, with a positive outlook on new game categories and the continued development of AI capabilities in office software [8] Financial Performance Summary - For 2023, total revenue is projected at 8,547 million, with a year-on-year growth of 11.74% - The net profit attributable to the parent company is expected to be 483.46 million, reflecting a significant year-on-year increase of 107.99% - Earnings per share (EPS) for 2023 is estimated at 0.35 yuan, with a price-to-earnings (P/E) ratio of 93.52 [1] Revenue and Profit Forecast - The company forecasts total revenue of 10,318 million for 2024, with a year-on-year growth of 20.91% - The net profit attributable to the parent company is projected to reach 1,551.61 million in 2024, representing a year-on-year increase of 220.94% - EPS is expected to rise to 1.11 yuan in 2024, with a P/E ratio of 29.14 [1][9] Business Segments Overview - The gaming segment reported revenue of 10.37 billion in Q1 2025, with a year-on-year growth of 13.71% - The office software segment generated revenue of 13.01 billion in Q1 2025, with a year-on-year increase of 6.21% [8] - The report highlights the company's strategy to enhance AI user engagement and expand its international presence through localized operations [8] Research and Development Investment - The company has increased its R&D expenses to support AI and new game category development, with R&D costs rising by 16.14% year-on-year [8][9] - The report indicates a commitment to continuous investment in R&D to drive innovation and growth in both gaming and office software sectors [8]

Core Viewpoint - CICC maintains its revenue and net profit forecasts for Kingsoft (03888) for 2025 and 2026, with a target price of HKD 50, indicating a 39% upside potential based on a 2025 P/E ratio of 24.9x [1] Group 1: Office Business - The office business experienced a year-on-year revenue growth of 6%, driven by WPS personal and WPS 365 services, but saw a quarter-on-quarter decline of 13% due to disruptions from new procurement processes for domestic software [2] - As of March 2025, WPS Office's global monthly active devices reached 647 million, with a year-on-year increase of 8%, and the PC version had 301 million monthly active devices, up 11% year-on-year [2] - The management emphasized a core strategy of "AI + collaboration + overseas" for the office business, with a focus on leveraging the user base accumulated in overseas markets since 2018 [2] Group 2: Gaming Business - The gaming business reported a year-on-year revenue increase of 14%, mainly due to contributions from "Jian Wang 3" and the anime game "Chen Bai Jin Qu," but experienced a quarter-on-quarter decline of 20% due to seasonal factors [3] - Upcoming new games include the sci-fi mech game "Jie Xian Ji," expected to launch in summer 2025, and the sequel to the "Jian Xia Qing Yuan" series, which will have a full platform public test on May 29 [3] - Future strategies for the gaming business include adhering to a principle of quality, diversifying game genres beyond martial arts, and exploring international markets [3] Group 3: Financial Performance - In Q1, the operating profit margin was 25.7%, down 2.4 percentage points year-on-year and 13.9 percentage points quarter-on-quarter, primarily due to increased R&D investments in AI and new games [4] - The net profit margin was 12.1%, reflecting a year-on-year decline of 1.2 percentage points and a quarter-on-quarter decline of 4.3 percentage points, mainly due to the drop in operating profit margin [4]

证券时报·数据宝统计显示，5月29日有32家香港上市公司进行了股份回购，合计回购3326.26万股，回购 金额9.32亿港元。 腾讯控股回购数量98.50万股，回购金额5.00亿港元，回购最高价为511.500港元，最低价为504.000港 元，年内累计回购金额255.30亿港元；友邦保险回购数量566.58万股，回购金额3.66亿港元，回购最高 价为65.200港元，最低价为63.750港元，年内累计回购金额101.21亿港元；金山软件回购数量58.20万 股，回购金额1999.74万港元，回购最高价为35.100港元，最低价为33.600港元，年内累计回购金额 1999.74万港元。 （文章来源：证券时报网） 5月29日港股公司回购一览 | 代码 | 简称 | 回购股数 | 回购金额（万 | 回购最高价 | 回购最低价 | 年内累计回购金额 | | --- | --- | --- | --- | --- | --- | --- | | | | （万股） | 港元） | （港元） | （港元） | （万港元） | | 00700 | 腾讯控股 | 98.50 | 50021.97 | 511.500 | 5 ...

Group 1 - The core point of the news is the upcoming announcement of the game "Limit Breaker" by Kingsoft, expected to be officially scheduled in early June, which is anticipated to significantly boost the company's revenue and profits if it performs well in the market [1] - Kingsoft has maintained a steady development trend in its gaming business, and "Limit Breaker" is a key project with high market expectations [1] Group 2 - CD Projekt RED reported that its classic game "The Witcher 3: Wild Hunt" has surpassed 60 million copies sold, showcasing the company's strong game operation capabilities [2] - The continued sales growth of "The Witcher 3" and the success of the "Cyberpunk 2077: Phantom Liberty" expansion pack have enhanced investor confidence in CD Projekt RED's future profitability [2] - The steady progress of new projects like "The Witcher 4" indicates significant growth potential for the company [2] Group 3 - The domestic game "Functional Heroes," developed by Guangzhou Egg Culture, is set to launch on May 30, featuring unique gameplay and creative elements that have garnered widespread attention [3] - The game’s vertical screen, one-handed operation is designed to cater to players' fragmented time, potentially increasing its competitiveness in the market [3] - If "Functional Heroes" can quickly accumulate a large user base and establish a good reputation post-launch, it will enhance brand awareness [3]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price adjusted from HKD 50.00 to HKD 46.00, indicating a potential upside of 27.6% from the current price of HKD 36.05 [4][2]. Core Insights - The company's Q1 performance was impacted by seasonal factors and increased R&D expenditures, particularly in AI and new game categories. Game revenue saw a quarter-on-quarter decline primarily due to seasonal decreases in monetization updates for "Jian Wang 3," while WPS revenue also fell due to procurement process impacts [2][8]. - New game launches are anticipated to stabilize revenue in the second half of the year, with titles like "Jie Xian Ji" expected to launch in summer and "Jian Xia Qian Yuan: Zero" by the end of May [2][8]. - Adjustments to profit forecasts for 2025-2027 were made, reflecting changes in the valuation contribution from Kingsoft Cloud due to its declining market value [2][3]. Financial Performance Summary - **Revenue Projections**: - 2025E: RMB 11,184 million (down 4% from previous forecast) - 2026E: RMB 12,189 million (down 5%) - 2027E: RMB 13,486 million (down 5%) [3][12] - **Game and Other Revenue**: - 2025E: RMB 5,327 million (down 4%) - 2026E: RMB 5,354 million (down 8%) - 2027E: RMB 5,484 million (down 8%) [3][12] - **WPS Revenue**: - 2025E: RMB 5,857 million (down 3%) - 2026E: RMB 6,836 million (down 3%) - 2027E: RMB 8,002 million (down 3%) [3][12] - **Gross Profit**: - 2025E: RMB 9,281 million (up 6%) - 2026E: RMB 10,098 million (up 3%) - 2027E: RMB 11,204 million (up 14%) [3][12] - **Adjusted Net Profit**: - 2025E: RMB 2,724 million (down 1%) - 2026E: RMB 2,957 million (down 4%) - 2027E: RMB 3,461 million (down 3%) [3][12] Market Data - The company's market capitalization is approximately HKD 50,233.87 million, with a 52-week high of HKD 46.90 and a low of HKD 20.10. The average daily trading volume is 13.72 million shares, and the year-to-date change is 7.13% [6][12].

Investment Rating - The investment rating for the company is "Buy" with a target price adjusted from HKD 50.00 to HKD 46.00, indicating a potential upside of 27.6% from the current price of HKD 36.05 [4][2]. Core Insights - The company's Q1 performance was impacted by seasonal factors and increased R&D expenditures, particularly in AI and new game categories. Game revenue saw a quarter-on-quarter decline primarily due to seasonal decreases in monetization updates for "Jian Wang 3," while WPS revenue also fell due to procurement process changes. New game launches are expected to stabilize revenue in the second half of the year [2][8]. - Adjustments to profit forecasts for 2025-2027 were made, reflecting changes in the valuation contribution from Kingsoft Cloud due to its market value decline [2][3]. Financial Performance Summary - **Revenue Projections**: - 2025E: RMB 11,184 million (down 4% from previous forecast) - 2026E: RMB 12,189 million (down 5%) - 2027E: RMB 13,486 million (down 5%) [3][12]. - **Game and Other Revenue**: - 2025E: RMB 5,327 million (down 4%) - 2026E: RMB 5,354 million (down 8%) - 2027E: RMB 5,484 million (down 8%) [3]. - **WPS Revenue**: - 2025E: RMB 5,857 million (down 3%) - 2026E: RMB 6,836 million (down 3%) - 2027E: RMB 8,002 million (down 3%) [3]. - **Gross Profit**: - 2025E: RMB 9,281 million (up 6%) - 2026E: RMB 10,098 million (up 3%) - 2027E: RMB 11,204 million (up 14%) [3]. - **Adjusted Net Profit**: - 2025E: RMB 2,724 million (down 1%) - 2026E: RMB 2,957 million (down 4%) - 2027E: RMB 3,461 million (down 3%) [3]. Market Data - The company's market capitalization is approximately HKD 50,233.87 million, with a 52-week high of HKD 46.90 and a low of HKD 20.10. The average daily trading volume is 13.72 million shares, and the year-to-date change is +7.13% [6][12].