Lyon: UBS lowers target price for Kingsoft Corporation Limited (03888) to HK$47.4, maintains "high conviction outperform the market" rating.

Zhitong Finance and Economics App learned that Lyon released a research report stating that Kingsoft Software (03888) first-quarter revenue is in line with expectations, but profits fell short of expectations, mainly due to the upcoming game "Mecha Break" causing an increase in sales and marketing (S&M) expenses. The delayed release of the game has resulted in a decrease in the group's game revenue for this year, but the company remains optimistic about its performance after its release. In addition, the company is developing a multilingual version of WPS and establishing an overseas team and S&M strategy, expected to be completed in June. The company has lowered its revenue and net profit forecast for the group this year by about 4% and 15% respectively, lowering the target price from 57.8 Hong Kong dollars to 47.4 Hong Kong dollars, while maintaining a "highly confident outperforming the market" rating.