HK Stock Market Move | KINGSOFT (03888) rises more than 3%, Morgan Stanley accuses the company of discounting, showing a narrowing trend in structural profits.

KINGSOFT (03888) rose more than 3%, up 3.35% to HK$29.35 as of press time, with a turnover of HK$677.01 million. Morgan Stanley released a research report pointing out the structural trend of KINGSOFT Holdings' discount narrowing from the current level of 54%. On the other hand, Morgan Stanley predicts that with the promotion of "Jianwang 3" and "Chen Bai Prohibited Zone", the revenue of KINGSOFT's mobile gaming business is expected to increase by 40% to 50% year-on-year in the second half of this year, with a bias towards upside risks. In addition, the company's subsidiary KINGSOFT CLOUD (03896) has recently announced that it has entered into a financial lease agreement to provide funds for its artificial intelligence capital expenditure, thereby reducing the risk of further financial support from the parent company. The bank expects KINGSOFT CLOUD to repay the RMB 1.5 billion shareholder loan on time.