KAIYUAN SECURITIES·2025-08-21 07:13Investment Rating - The investment rating for Kingsoft Corporation (03888.HK) is "Buy" (maintained) [1][5]. Core Views - The report indicates that Kingsoft's revenue is expected to grow at a modest pace, with projected revenues of 10.62 billion, 11.96 billion, and 13.38 billion yuan for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 2.9%, 12.7%, and 11.8% [5][8]. - The net profit forecast has been adjusted downwards to 1.78 billion, 2.16 billion, and 2.70 billion yuan for the same years, with expected growth rates of 15.0%, 21.0%, and 25.2% [5][8]. - The current price-to-earnings (P/E) ratio is projected to be 24.4, 20.1, and 16.1 for the years 2025, 2026, and 2027 respectively, indicating potential for valuation improvement contingent on AI monetization and game performance recovery [5][8]. Financial Summary and Valuation Metrics - For 2023, the operating revenue was 8.534 billion yuan, with a year-on-year growth of 11.7% [8]. - The gross margin for 2025 is expected to be 80.9%, with a net profit margin of 16.8% [8]. - The diluted earnings per share (EPS) for 2025 is projected at 1.336 yuan, with a P/E ratio of 24.4 [8].