Citigroup: Goldman Sachs resumes coverage of Kingsoft Corporation Limited (03888) with a target price of HK$33 and maintains a "buy" rating.

According to the Wisdom Financial APP, Citigroup released a research report stating that Kingsoft Corporation (03888) saw a 3% year-on-year increase in first quarter revenue, but an 8% decrease from the previous quarter, in line with expectations; adjusted net profit surged to 1.14 billion RMB year-on-year. Looking ahead, the bank predicts that Kingsoft's gaming business will reach a turning point in either the fourth quarter of this year or early 2027. The bank lowered its revenue forecasts for the company for the fiscal years 2026 to 2028 by 2%, to 10.2 billion, 11.3 billion, and 12.3 billion RMB respectively, to reflect expectations that the performance of the gaming business in the next one to two quarters will decline, and increased this year's adjusted net profit forecast by 27%, reflecting a higher share of joint venture profits in the first quarter, but lowered the next two years' adjusted profit forecast by 14% and 2%, reflecting a downward revision of gaming business gross margin forecasts. The target price was lowered from 35 Hong Kong dollars to 33 Hong Kong dollars, and the "buy" rating was maintained.