Citigroup: Maintains KINGSOFT "Buy" rating, target price raised to HKD 44

Citi released a research report stating that it has raised the profit forecasts for KINGSOFT by 19% and 14% for the next two years, reflecting the stronger-than-expected growth momentum in gaming, among other factors. The bank raised its target price from HKD 37 to HKD 44, maintaining a "Buy" rating. Looking ahead, the bank conservatively predicts that KINGSOFT's gaming revenue will grow in single digits this year, but does not rule out the upside potential from new games, and expects the growth momentum of WPS to continue. Additionally, the bank believes that KINGSOFT Cloud will continue to benefit from the artificial intelligence computing demand from Xiaomi Group-W, and that the profits of WPS are expected to improve further