HK-listed mobile game developer Kingsoft sinks to 7-month low on weak Q2

Kingsoft

21/08/2019 05:02

** Shares of Kingsoft Corp Ltd  3888.HK  fall as much as
8.8% to HK$13.88, their lowest since Jan. 16, after the Chinese
online and mobile game developer posts quarterly loss 
    ** Beijing-based company posts 1.42 billion yuan ($201.4
million) loss for quarter ended in June, compared with 100.95
million yuan profit a year earlier, while revenue surges 38.5%
 urn:newsml:reuters.com:*:nFWN25G0HE
    ** Jefferies maintains "buy" on the stock, but trims price
target to HK$18 from HK$20.40, saying Kingsoft's online games
revenue is expected to remain soft before the revamp of its
highly anticipated title JX Online III mobile
    ** Jefferies also expects Kingsoft to incur losses in 2019
due to soft gaming outlook in 2H19 
    ** Nomura maintains "reduce" on Kingsoft but cuts target
price to HK$13.80 from HK$16.20, saying soft performance in 2Q
is set to continue and no turnaround is expected in 2H19F  
    ** As of Tuesday's close, the stock had risen about 35% this
year
    ** Kingsoft has outperformed the Hang Seng Commerce &
Industry Index sector  .HSNC  by 3.1 percentage points in the
past one month
    ** The Hong Kong Hang Seng sub-index tracking information
technology firms  .HSCIIT  edges up 0.1%
    ** The Hang Seng China enterprises index  .HSCE  climbs
0.5%, and the benchmark index  .HSI  gains 0.1%


($1 = 7.0518 Chinese yuan renminbi)

 (Reuters Messaging: donny.kwok.thomsonreuters.com@reuters.net)