The Week

It was a tough week for KINGSOFT (3888.HK), which shed 5.97% to close at HK$24.56, sharply underperforming the Hang Seng Index’s 2.19% rally by roughly 8.16 percentage points. Monday (17 Aug) opened with selling pressure, dropping 1.38%. After a quiet 0.78% dip on Tuesday (18 Aug), the stock slid 5.95% on Wednesday (19 Aug) to hit a weekly low of HK$23.66 before a modest 2.16% bounce on Thursday (20 Aug). The week traced a sharp sell-off followed by a low-level stabilisation.

Key Events

The week revolved around the interim results. After Wednesday’s close, the company reported a 100.8% year-on-year surge in net profit attributable to owners to RMB 1.64 billion for the first half of 2026, with revenue up 6% to RMB 4.93 billion. Its subsidiary Beijing Kingsoft Office Software also posted a 236.94% jump in net profit to RMB 2.52 billion. The results highlighted that robust growth in office software more than offset a decline in the gaming segment, reshaping the revenue mix.

Analyst Ratings

Among the nine brokers covering the stock, four rate it buy, two rate it overweight, and three rate it hold, with no sell or underweight calls. The consensus recommendation is buy, with a consensus target of HK$32.18, implying roughly 31% upside from the spot price. Targets range widely from HK$24.77 to HK$51.51, pointing to divided views. The stock ranks 3rd out of 10 in the electronic gaming and multimedia industry. During the week, BofA Securities maintained its neutral rating but lifted its target to HK$26.

The Week Ahead

With the interim results now public, attention shifts to the sustainability of subscription revenue in the office segment and any pipeline updates for the gaming business at upcoming briefings. On the macro side, sector rotation and shifting fund flows within Hong Kong’s tech space could continue to influence near-term direction.

In Short

KINGSOFT sold off this week despite strong earnings, suggesting a classic profit-taking move. The stock trades at around 10x earnings, just above its 60-day moving average but below the 20-day line, flagging short-term technical pressure. The analyst consensus leans positive, with a consensus target well above spot. However, the latest trading session showed large-lot money as a net buyer while small and medium orders were net sellers, highlighting a tug of war. The question ahead is whether earnings momentum can translate into a re-rating and whether the gaming division stabilises.

This article is generated by LongbridgeAI from market data, for information only and not investment advice.