Zhi Tong Cai Jing·2025-11-20 07:14Core Viewpoint - Bank of China International reports that Kingsoft Corporation (03888) underperformed expectations in Q3 this year, with revenue falling 8% to 11% below forecasts and net profit down 26% to 55% below expectations, primarily due to weak gaming business performance. However, the office software segment saw a revenue increase of 26%, partially offsetting the negative impact [1] Group 1: Financial Performance - Kingsoft's Q3 revenue is projected to be 8% to 11% lower than expected [1] - Net profit is anticipated to be 26% to 55% below forecasts [1] - Office software business revenue increased by 26%, providing some mitigation against the gaming segment's decline [1] Group 2: Investment Rating and Price Target - Bank of China International upgraded Kingsoft's rating from "Hold" to "Buy" [1] - The target price for Kingsoft was adjusted down from HKD 41.7 to HKD 40 [1] - The risk-reward ratio for Kingsoft's stock has become more attractive after a nine-month adjustment period [1] Group 3: Market Outlook - Despite the normalization of Kingsoft's gaming business, the product line remains weak [1] - The stock price has declined by 27% since mid-2025, which is believed to have largely reflected the downside risks [1] - The market may be overlooking the potential growth momentum in the office software and cloud business segments [1]