Dahua Jixian: Goldman Sachs lowers target price of Kingsoft Corporation (03888.HK) to 47 Hong Kong dollars, maintains "buy" rating.

According to the China Securities Journal app, Dahua Jixian released a research report stating that the first quarter performance of Kingsoft Corporation (03888.HK) was below expectations, with revenue growing by 9.4% year-on-year, lower than the market's forecast of 6%. The gross profit margin increased by 1 percentage point to 82.1%, in line with expectations. During the period, net profit remained flat year-on-year, with a decrease in net profit margin by 1 percentage point to 12.1%. The bank holds a cautiously optimistic attitude towards the group, as cloud revenue growth has slowed down, but AI development is progressing well and is expected to offset the impact of the growth slowdown. The target price was revised down from HK$55 to HK$47, and the "buy" rating was maintained.