智通财经网·2025-11-20 03:20Core Viewpoint - Daiwa Capital Markets maintains a "Buy" rating for Kingsoft Corporation (03888) with a slightly reduced target price of HKD 44, expressing cautious optimism regarding the company's online gaming revenue growth in Q4 [1] Financial Performance - Kingsoft's Q3 2025 performance fell short of expectations, with revenue declining 17% year-on-year to RMB 2.4 billion, which is 6% below market expectations [1] - Gross margin decreased by 4 percentage points year-on-year to 80.4%, aligning with market consensus [1] - Operating profit plummeted 76% to RMB 277 million, with operating margin declining by 28 percentage points to 11% [1] - Net profit dropped 49% year-on-year to RMB 213 million, with net profit margin narrowing by 5 percentage points to 8.8% [1] Revenue and Profit Forecasts - The revenue forecast for Q4 has been reduced by 3% due to weak online gaming revenue and uncertainties regarding new game monetization, while the revenue forecast for next year remains unchanged [1] - The adjusted net profit forecast for Q4 has been lowered by 6% to account for increased AI-related investments [1]