By Ronnie Harui
Kingsoft Corp.'s shares rose sharply after its net profit jumped more than 14-fold in the third quarter, boosted by robust revenue growth in its online-gaming business.
Hong Kong-listed shares of Kingsoft were recently 10% higher at 32.20 Hong Kong dollars, equivalent to US$4.14, on Wednesday. The stock earlier touched HK$32.45, its highest intraday level since Oct. 8.
The Chinese software- and internet-services company said after Tuesday's market close that its net profit soared to 413.4 million yuan, equivalent to US$57.1 million, from 28.5 million yuan a year earlier. Revenue from the company's online games and others business surged 78% to 1.71 billion yuan in the third quarter.
Nomura analysts said the results were better than expected, likely due to a strong demand uptick in the gaming sector.
"The current policy and market environment is positive for the company's gaming business, which may continue to deliver solid growth thanks to the outperformance of its classic game titles 'JX' series," they said in a research note.
Nomura raised its target price on Kingsoft's stock to HK$35.00 from HK$26.00 while maintaining a buy rating.
Write to Ronnie Harui at ronnie.harui@wsj.com
(END) Dow Jones Newswires
November 19, 2024 22:22 ET (03:22 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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