Ge Long Hui·2025-11-20 02:39Core Viewpoint - The report from Citi indicates that Kingsoft's Q3 revenue fell short of expectations, primarily due to a significant decline in gaming revenue, while office software revenue showed strong growth driven by government IT initiatives and WPS365 [1] Group 1: Financial Performance - Kingsoft's gaming revenue decreased by 47% year-on-year, which is 8% lower than Citi's expectations, attributed to high comparative figures from the previous year [1] - Office software revenue accelerated with a year-on-year increase of 26%, benefiting from advancements in government IT applications [1] - The average revenue per user (ARPU) for personal paid users remained stable, indicating consistent user engagement [1] Group 2: Future Outlook - The gaming business is expected to continue facing pressure in the upcoming quarters, while the office software segment is likely to maintain its strong momentum [1] - Revenue forecasts for 2025 and 2026 have been revised down by 3% and 4% respectively, with net profit forecasts reduced by 15% and 18% [1] - The target price has been adjusted from HKD 37.8 to HKD 35.5, while maintaining an "outperform" rating [1]