China's Kingsoft falls most in 14 years, Citi trims PT after results

Kingsoft

25/08/2021 07:11

** Mobile games developer's shares Kingsoft Corp Ltd
 3888.HK  plunge 24.8% to HK$29.65, biggest daily pct drop since
listing in October 2007
    ** Stock hits lowest since July 28, on course to snap two
consecutive sessions of gains
    ** Company's shares biggest pct decliner on Hang Seng Tech
index  .HSTECH  and Hang Seng Composite index  .HSCI 
    ** Beijing-based Kingsoft says Q2 revenue rose 4.2% to 1.48
bln yuan; net profit plunged 99.5% to 48.7 mln yuan ($7.5 mln),
hurt by an increase in costs related to server, bandwidth, R&D
and selling & distribution
    ** Citi maintains "buy" rating on stock due to potential
acceleration of gaming growth in 2022
    ** Brokerage trims PT to HK$63 from HK$69, lowers Kingsoft's
net income estimates to reflect delay in new games and R&D
expenses hike for talent hiring
    ** Hang Seng Tech index  .HSTECH  gains 0.4%, Hang Seng
Composite index  .HSCI  climbs 0.1%
    ** Hang Seng China Enterprises index  .HSCE  eases 0.3%,
benchmark index  .HSI  slips 0.2%
    ** Company's shares down 21.1% this year as of last close 

 ($1 = 6.4767 Chinese yuan renminbi)

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