M Stanley Lowers KINGSOFT (03888.HK) Price Target to $33, Maintains Equalweight Rating
Revenue Forecast Adjustment: Morgan Stanley has lowered its revenue forecasts for KINGSOFT for 2025-2027 by approximately 3.6% to 3.5% due to disappointing performance in the gaming sector.
Earnings Per Share (EPS) Reduction: The brokerage has also reduced its adjusted EPS estimates for KINGSOFT by 12.4% to 9.6%, citing lower revenue and gross margin expectations alongside increased capital expenditure.
Target Price Revision: Following these adjustments, Morgan Stanley has decreased its target price for KINGSOFT from $38 to $33 while maintaining an Equalweight rating.
Market Activity: As of the latest data, KINGSOFT's stock has seen a short selling volume of $55.08 million, with a short selling ratio of 21.125%.
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<BofAS Analysis> Ratings and Target Prices for Chinese Software Stocks (Table)
Stock Performance: KINGDEE INT'L saw a 3.56% increase in shares, with a short selling ratio of 28.13%, while MEITU and KINGSOFT CLOUD also experienced gains of 3.1% and 3.06%, respectively.
Analyst Ratings: BofAS has identified KINGDEE INT'L, MEITU, and KINGSOFT OFFICE as top picks among Chinese software stocks, while M Stanley anticipates further collaboration between MEITU and Alibaba, assigning a target price of $15.7.
Short Selling Data: The short selling amounts for various companies include KINGSOFT at $84.43M and WEIMOB INC at $14.20M, indicating varying levels of market skepticism.
Market Outlook: Ratings for KINGSOFT have shifted from "Buy" to "Neutral," reflecting a change in investor sentiment, with target prices adjusted accordingly.
Analysis: HSTECH's Top 5 Strongest and Weakest Stocks for 2025 (Table)
Top 5 Strongest Stocks: The strongest stocks in HSTECH for 2025 include HUA HONG SEMI (+243.2%), HORIZONROBOT-W (+140.6%), SMIC (+124.7%), JD HEALTH (+97.5%), and BABA-W (+77.5%), with significant short selling ratios noted for each.
Top 5 Weakest Stocks: The weakest stocks in HSTECH for 2025 are MEITUAN-W (-31.9%), LI AUTO-W (-31%), BYD ELECTRONIC (-20%), JD-SW (-17.9%), and KINGSOFT (-15.5%), with varying short selling amounts and ratios.
Market Performance: The HSTECH index concluded 2025 with a gain of 1,047 points, representing a 23.5% increase, closing at 5,515.
Short Selling Data: The short selling data reflects significant activity, particularly in stocks like BABA-W and MEITUAN-W, indicating investor sentiment and market dynamics as of December 31, 2025.
<Research> CGS Begins Coverage of KINGSOFT (03888.HK) with a Buy Recommendation
Company Overview: KINGSOFT (03888.HK) is a leading domestic office software company with a positive outlook driven by AI advancements and strategic changes in its gaming business.
Brokerage Coverage: China Galaxy Securities (CGS) has initiated coverage on KINGSOFT, giving it a "Recommend" rating based on its growth potential.
Revenue Projections: CGS forecasts KINGSOFT's revenue for 2025-2027 to reach RMB10.568 billion, RMB11.608 billion, and RMB13.4 billion, with respective growth rates of 2.43%, 9.83%, and 15.44%.
Earnings Per Share (EPS): The projected EPS for KINGSOFT is expected to be RMB1, RMB1.11, and RMB1.31 for the years 2025, 2026, and 2027, respectively.
HSI Closes with a 10-Point Decline; Chip Stocks Weaken; ZTE Plummets 13%
Market Performance: The HSI closed down 10 points at 25,530, with the HSCEI and HSTECH also experiencing declines, while total market turnover reached HKD182.477 billion.
Stock Movements: BABA-W fell 1.7% amid reports of increased resale prices for its AI glasses, while KUAISHOU-W and NTES-S also saw minor declines despite new initiatives and game pre-registrations.
Tech Sector Trends: Major tech stocks like TENCENT and BILIBILI-W experienced slight decreases, while BIDU-SW and MEITUAN-W posted modest gains.
Chip and Other Stocks: Chip stocks SMIC and HUA HONG SEMI declined, with ZTE suffering a significant drop of 13.1%, reflecting broader challenges in the sector.
HKEX Launches HKEX Tech 100 Index Covering 100 Leading Tech Companies
- Index Expansion: HKEX has launched the HKEX Tech 100 Index, which tracks 100 Hong Kong-listed companies across six innovative themes, marking a significant investment in the vibrancy of the region's capital market ecosystem.
- Global Investment Opportunities: All constituents are eligible for Southbound trading, ensuring broad accessibility for global and Chinese Mainland investors, thereby enhancing the attractiveness and liquidity of the Hong Kong market.
- ETF Development: HKEX has entered into a licensing agreement with E Fund Management to introduce an ETF based on the HKEX Tech 100 in the Chinese Mainland, addressing strong market demand for investment opportunities in Hong Kong's tech sector.
- Fast-Entry Mechanism: The new index incorporates a fast-entry mechanism that allows newly-listed companies meeting specific criteria to join outside the regular review cycle, thereby enhancing the index's dynamism and market adaptability.
HSI Declines by 61 Points at Midday; GAC Surges 12%; SERES Drops 7%
Market Performance: The HSI fell by 0.2% to 25,884, while the HSCEI also dipped 0.2% to 9,144; the HSTECH saw a slight increase of 0.1% to 5,603, with total turnover for the morning session at HK$75.496 billion.
Gaming Approvals: In November, 178 domestically produced online games were approved in mainland China, including titles from BIDU-SW and BILIBILI-W, which saw respective share price movements of +0.8% and -0.4%.
Tech Stock Movements: JD-SW gained 0.9% after receiving conditional approval for an acquisition, while other tech stocks like BABA-W rose 0.7%, and TENCENT, MEITUAN-W, and KUAISHOU-W experienced declines between 0.2% and 0.6%.
Auto Sector Highlights: GAC GROUP surged 12.1% following the delivery of its Aion UT Super, while SERES dropped 7.8%. BYD COMPANY and HORIZONROBOT-W saw minor increases, while CATL experienced a slight decline of 1.1%.
<BofAS Analysis> Ratings and Target Prices for Chinese Software Stocks (Table)
Stock Performance: KINGDEE INT'L saw a 3.56% increase in shares, with a short selling ratio of 28.13%, while MEITU and KINGSOFT CLOUD also experienced gains of 3.1% and 3.06%, respectively.
Analyst Ratings: BofAS has identified KINGDEE INT'L, MEITU, and KINGSOFT OFFICE as top picks among Chinese software stocks, while M Stanley anticipates further collaboration between MEITU and Alibaba, assigning a target price of $15.7.
Short Selling Data: The short selling amounts for various companies include KINGSOFT at $84.43M and WEIMOB INC at $14.20M, indicating varying levels of market skepticism.
Market Outlook: Ratings for KINGSOFT have shifted from "Buy" to "Neutral," reflecting a change in investor sentiment, with target prices adjusted accordingly.
Analysis: HSTECH's Top 5 Strongest and Weakest Stocks for 2025 (Table)
Top 5 Strongest Stocks: The strongest stocks in HSTECH for 2025 include HUA HONG SEMI (+243.2%), HORIZONROBOT-W (+140.6%), SMIC (+124.7%), JD HEALTH (+97.5%), and BABA-W (+77.5%), with significant short selling ratios noted for each.
Top 5 Weakest Stocks: The weakest stocks in HSTECH for 2025 are MEITUAN-W (-31.9%), LI AUTO-W (-31%), BYD ELECTRONIC (-20%), JD-SW (-17.9%), and KINGSOFT (-15.5%), with varying short selling amounts and ratios.
Market Performance: The HSTECH index concluded 2025 with a gain of 1,047 points, representing a 23.5% increase, closing at 5,515.
Short Selling Data: The short selling data reflects significant activity, particularly in stocks like BABA-W and MEITUAN-W, indicating investor sentiment and market dynamics as of December 31, 2025.
<Research> CGS Begins Coverage of KINGSOFT (03888.HK) with a Buy Recommendation
Company Overview: KINGSOFT (03888.HK) is a leading domestic office software company with a positive outlook driven by AI advancements and strategic changes in its gaming business.
Brokerage Coverage: China Galaxy Securities (CGS) has initiated coverage on KINGSOFT, giving it a "Recommend" rating based on its growth potential.
Revenue Projections: CGS forecasts KINGSOFT's revenue for 2025-2027 to reach RMB10.568 billion, RMB11.608 billion, and RMB13.4 billion, with respective growth rates of 2.43%, 9.83%, and 15.44%.
Earnings Per Share (EPS): The projected EPS for KINGSOFT is expected to be RMB1, RMB1.11, and RMB1.31 for the years 2025, 2026, and 2027, respectively.
HSI Closes with a 10-Point Decline; Chip Stocks Weaken; ZTE Plummets 13%
Market Performance: The HSI closed down 10 points at 25,530, with the HSCEI and HSTECH also experiencing declines, while total market turnover reached HKD182.477 billion.
Stock Movements: BABA-W fell 1.7% amid reports of increased resale prices for its AI glasses, while KUAISHOU-W and NTES-S also saw minor declines despite new initiatives and game pre-registrations.
Tech Sector Trends: Major tech stocks like TENCENT and BILIBILI-W experienced slight decreases, while BIDU-SW and MEITUAN-W posted modest gains.
Chip and Other Stocks: Chip stocks SMIC and HUA HONG SEMI declined, with ZTE suffering a significant drop of 13.1%, reflecting broader challenges in the sector.
HKEX Launches HKEX Tech 100 Index Covering 100 Leading Tech Companies
- Index Expansion: HKEX has launched the HKEX Tech 100 Index, which tracks 100 Hong Kong-listed companies across six innovative themes, marking a significant investment in the vibrancy of the region's capital market ecosystem.
- Global Investment Opportunities: All constituents are eligible for Southbound trading, ensuring broad accessibility for global and Chinese Mainland investors, thereby enhancing the attractiveness and liquidity of the Hong Kong market.
- ETF Development: HKEX has entered into a licensing agreement with E Fund Management to introduce an ETF based on the HKEX Tech 100 in the Chinese Mainland, addressing strong market demand for investment opportunities in Hong Kong's tech sector.
- Fast-Entry Mechanism: The new index incorporates a fast-entry mechanism that allows newly-listed companies meeting specific criteria to join outside the regular review cycle, thereby enhancing the index's dynamism and market adaptability.
HSI Declines by 61 Points at Midday; GAC Surges 12%; SERES Drops 7%
Market Performance: The HSI fell by 0.2% to 25,884, while the HSCEI also dipped 0.2% to 9,144; the HSTECH saw a slight increase of 0.1% to 5,603, with total turnover for the morning session at HK$75.496 billion.
Gaming Approvals: In November, 178 domestically produced online games were approved in mainland China, including titles from BIDU-SW and BILIBILI-W, which saw respective share price movements of +0.8% and -0.4%.
Tech Stock Movements: JD-SW gained 0.9% after receiving conditional approval for an acquisition, while other tech stocks like BABA-W rose 0.7%, and TENCENT, MEITUAN-W, and KUAISHOU-W experienced declines between 0.2% and 0.6%.
Auto Sector Highlights: GAC GROUP surged 12.1% following the delivery of its Aion UT Super, while SERES dropped 7.8%. BYD COMPANY and HORIZONROBOT-W saw minor increases, while CATL experienced a slight decline of 1.1%.
