Lyon: KINGSOFT (03888) rating upgraded to "very confident outperforming the market" with target price raised to HK$57.1.

According to a research report released by Lyon, KINGSOFT (03888) has been upgraded to a "outperform" rating with high confidence. The report points out that the fundamentals of the gaming and cloud business are continuing to improve, along with localized development driven by policies, and the low-cost AI trend brought by DeepSeek will serve as a further catalyst. Revenue forecasts for the fiscal year 2025 to 2026 have been increased by 4% to 5%, reflecting strong performance in online gaming. The target price has been raised from HKD 37.2 to HKD 57.1.