Lyon: Lowering the target price of Kingsoft Software to 29.1 Hong Kong dollars, expecting the gaming business to face transformation this year.

Lyon released a research report, expecting that 2026 will be a year of transformation for Kingsoft's gaming business, facing changes in leadership and strategy. It is predicted that game revenue will decline by more than ten percentage points annually, but office software revenue growth is expected to accelerate to 20% annually. The bank has lowered the group's revenue forecast for the next two years by 7%, and lowered operating profit forecasts by 21% and 16% respectively, to reflect unfavorable factors related to the gaming industry. The target price for Kingsoft has been lowered from HK$35.5 to HK$29.1, with a "outperform" rating maintained.