Zhi Tong Cai Jing·2025-11-20 03:58Core Viewpoint - Citigroup's report indicates that Kingsoft Corporation (03888) reported third-quarter revenue below expectations, primarily due to a decline in gaming business revenue [1] Group 1: Gaming Business Performance - Gaming revenue decreased by 47% year-on-year, which is 8% lower than Citigroup's expectations, attributed to high comparative figures from the previous year [1] - The gaming business is expected to continue facing pressure in the upcoming quarters [1] Group 2: Office Software Performance - Office software revenue accelerated growth, increasing by 26% year-on-year, driven by advancements in government IT applications and WPS365 [1] - The growth in personal paid users remains stable, with average revenue per user (ARPU) trending towards stability [1] Group 3: Financial Forecast Adjustments - Revenue forecasts for 2025 and 2026 have been reduced by 3% and 4% respectively, while net profit forecasts have been cut by 15% and 18% [1] - The target price has been lowered from HKD 37.8 to HKD 35.5, while maintaining an outperform rating [1]