Morgan Stanley: Maintains "Overweight" rating on KINGSSOFT (03888) with target price raised to HK$36

Morgan Stanley has released a research report stating that it has raised the target price of KINGSOFT (03888) from HK$32 to HK$36 and maintains a "overweight" rating. The report points out that Kingsoft's third-quarter revenue exceeded the bank's expectations by 14%, with game revenue growing by 78% year-on-year, surpassing the bank's expectations by 27%. During the period, operating profit and net profit exceeded Morgan Stanley's forecasts by 86% and 54% respectively. Morgan Stanley has raised KINGSOFT's revenue forecasts for 2024 to 2026 by 2%, 2.8%, and 1.7% respectively, to reflect the surprise brought by the group's gaming business to the market. Additionally, it has raised the operating profit forecasts for 2024 to 2026 by 10.2%, 9.4%, and 6.4% respectively.