- Kingsoft’s third-quarter revenue was 2.42 billion yuan, down 17% from the previous year, and missed the estimated 2.63 billion yuan.
- The revenue from online games and other segments fell sharply by 47% year-over-year, totaling 897.9 million yuan.
- Kingsoft’s net income was 213.1 million yuan, a decrease of 48% compared to last year.
- Gross margin remained at 80%, slightly below last year’s 84% but close to the estimated 80.4%.
- Research and development (R&D) expenses rose by 4.5% year-over-year to 899.5 million yuan, slightly under the estimated 906.3 million yuan.
- Selling and distribution expenses saw a significant increase of 55% year-over-year, reaching 564.4 million yuan, exceeding the expected 467.4 million yuan.
- Administrative expenses increased by 7.2% year-over-year to 177.9 million yuan, which was below the estimated 187.8 million yuan.
- Kingsoft’s WPS software division made significant progress in localization projects, particularly in AI-enabled products for government use.
- Two international intellectual property games, Goose Goose Duck and Angry Birds, are set to launch in China in the coming quarters.
- Kingsoft Office Group is focusing on the strategy of ‘AI, Collaboration, and Internationalization’ to cater to both individual and enterprise needs.
- The company currently has 19 buy ratings, 3 hold ratings, and no sell ratings from analysts.
A look at Kingsoft Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Kingsoft Corporation Ltd., a company known for its diverse software offerings including role-playing games and security software, has received a mixed outlook based on the Smartkarma Smart Scores. With a strong emphasis on growth and resilience, scoring high at 5 each, Kingsoft Corp seems poised for long-term success in expanding its market presence and weathering potential challenges. The company’s focus on value at a score of 4 further indicates a solid foundation that promises stability and potential for investors.
However, Kingsoft Corp‘s lower momentum score of 2 suggests a slower pace of market adoption or growth compared to its other scored factors. While growth and resilience are high, the company may need to strategize on boosting momentum to sustain investor confidence and market performance in the long run. Despite this, the overall outlook for Kingsoft Corp appears promising, presenting a compelling investment opportunity for those seeking a balanced mix of value, growth, and stability in the software sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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