China's online game developer Kingsoft jumps after Q1 results

Kingsoft

23/05/2024 04:48

** Shares of Kingsoft Corp Ltd  3888.HK  rise 4.3% to
HK$26.70, on course for their biggest one-day gain since May 2
    ** Stock on track to snap two straight sessions of fall;
third-biggest gainer on Hang Seng Tech Index  .HSTECH 
    ** The Chinese online and mobile games developer and
operator posts 8% Y/Y rise in Q1 revenue at 2.1 bln yuan ($289.9
mln) with net profit up 48% Y/Y to 284.6 mln yuan  
    ** Jefferies maintains "Buy" on the stock and raises price
target to HK$35 from HK$34, saying 1Q revenue in line with
estimates while adjusted operating profit beating expectations
and management highlighted positive feedback from new online
games 
    ** Nomura keeps "Buy" rating on upbeat gaming business
saying Kingsoft's management raises its gaming revenue guidance
to about 10% Y/Y growth in FY24E, from the previous single digit
growth, driven by better-than-expected performance of new titles
 
    ** Hang Seng Tech Index  .HSTECH  falls 1.4%, Hang Seng
Composite Index  .HSCI  declines 1.2% and Hang Seng Index  .HSI 
eases 1.3%
    ** Stock up 8.5% YTD  


($1 = 7.2432 Chinese yuan renminbi)

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