CICC International: Maintains "Buy" Rating on Kingsoft Corporation Limited (03888.HK), Lowers Target Price to 46 Hong Kong Dollars.

Wisdom Financial APP learned that China International released a research report stating that Kingsoft (03888.HK) first-quarter performance was affected by seasonality, with increased R&D spending on AI and new game categories. Among them, the commercial updates of the PC game "Jian Wang 3" decreased seasonally, leading to a quarterly decline in game revenue. The WPS software business also declined quarter-on-quarter due to its procurement process, leading to a 8% decrease in target price from 50 Hong Kong dollars to 46 Hong Kong dollars, with a "Buy" rating maintained. However, with the launch of new games by the group, namely "Unlimited Machine" in summer and "Swordsman Love: Zero" at the end of May, the bank expects that this may drive stable game business revenue in the second half of the year.