KINGSOFT's stock plummeted 5.48% during Monday's intraday trading session.
The sharp decline follows a research report that maintained an Outperform rating on the company but significantly lowered its target price by 18% to HK$32. The adjustment reflects growing uncertainties in the near-term growth prospects of KINGSOFT's gaming segment.
The report was issued after the company's fourth-quarter 2025 results, which showed a 32.8% year-on-year decline in gaming business revenue. Management indicated that near-term pressures on the gaming business are likely to persist, contributing to investor concerns.