China's Kingsoft at 13-month high on upbeat results, TP upgrade

Kingsoft

23/03/2023 07:32

** Shares of China's Kingsoft Corp Ltd  3888.HK  jump as
much as 15.2% to HK$35.15, their highest since February 2022 
    ** Stock on course for the biggest daily pct rise since
March 16, 2022, if gains hold and is biggest pct gainer in both
Hang Seng Tech Index  .HSTECH  and Hang Seng sub-index on
information technology firms  .HSCIIT  
    ** The office software and online games developer says 2022
revenue up 20% year-on-year to 7.64 bln yuan ($1.12 bln) 
    ** Jefferies maintains "buy" and raises PT to HK$40 from
HK$32 to factor in latest business developments post results and
says 4Q revenue beats on better-than-expected online games
performance 
    ** In 2023, we expect online games to grow at single-digit
YoY, with faster growth in 2H than in 1H, on new games release.
In office applications, we expect it to embrace opportunities in
generative AI with enhanced user experience in future -
Jefferies
    ** China Merchants Securities maintains "buy" and lifts TP
to HK$38 from HK$34, citing 4Q22 solid beat on gaming and cost
control with solid fundamental growth outlook intact
    ** Hang Seng sub-index on information technology firms
 .HSCIIT  jumps 5.4%, Hang Seng Tech Index  .HSTECH  surges
4.2%, Hang Seng Index  .HSI  rises 1.9%

    ($1 = 6.8235 Chinese yuan)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))