Nomura Raises Price Target for Beijing Kingsoft Office Software to 316 Yuan, Maintains Neutral Rating (688111, 2023).
March 29, 2023
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This is in line with the company’s recent financial performance. Beijing Kingsoft Office ($SHSE:688111) Software is a leading provider of office software for multiple platforms including Windows, Mac, iOS, and Android. The performance of Beijing Kingsoft Office Software has been quite impressive in the past few years. It has reported significant growth in revenues and profits over the same period. With this performance and the fact that Beijing Kingsoft Office Software has gained market share and improved operating efficiency, Nomura has felt that this raise in price target is justified. Nomura believes that the company’s continuous efforts to innovate and develop are likely to result in further improvements in financial performance. Nomura has maintained its Neutral rating for Beijing Kingsoft Office Software, which is in line with its view on the sector as a whole. It has noted that the company’s competitive position could be weakened by external factors such as competitive pricing or changes in customer preferences.
However, Nomura has maintained its positive view on the long-term outlook of the company.
Stock Price
The stock opened at 334.0 yuan and closed at 325.9 yuan, down 3.9% from the previous closing price of 339.3 yuan. The change in price target follows Nomura’s analysis of the company’s earnings report and industry trends, with the expectation that Beijing Kingsoft Office Software will benefit from increased demand for office software in the market. Despite the downward trend in the stock price, Nomura remains bullish on the company’s prospects, citing its strong presence in the Chinese office software market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Beijing Kingsoft Office. More…
| Total Revenues | Net Income | Net Margin |
| 3.88k | 1.12k | 30.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Beijing Kingsoft Office. More…
| Operations | Investing | Financing |
| 1.6k | 4.5k | -354.35 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Beijing Kingsoft Office. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 12.06k | 3.26k | 17.42 |
Key Ratios Snapshot
Some of the financial key ratios for Beijing Kingsoft Office are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 35.0% | 40.5% | 31.1% |
| FCF Margin | ROE | ROA |
| 36.7% | 8.8% | 6.3% |
Analysis
At GoodWhale, we have taken a look at the fundamentals of BEIJING KINGSOFT OFFICE SOFTWARE and analyzed them with our financial analysis tools. After considering the company’s financials, business performance, and other factors, we have given BEIJING KINGSOFT OFFICE SOFTWARE a Risk Rating of “Medium”. This means that it is a medium risk investment in terms of financial and business aspects. Moreover, GoodWhale has detected three risk warnings in the income statement, balance sheet, and cashflow statement of BEIJING KINGSOFT OFFICE SOFTWARE. If you want to dig into the details, register on GoodWhale.com and find out more. More…
Peers
The competition between Beijing Kingsoft Office Software Inc and its competitors, Hancom Lifecare Inc, Shanghai Weaver Network Co Ltd, and Wondershare Technology Group Co Ltd, is fierce. All four companies are industry leaders in the office software space, and each is striving to outdo the others in terms of innovation, customer service, product offerings and more. As the competition continues to heat up, each company is pushing to stay ahead of the pack in order to remain a top contender in the market.
– Hancom Lifecare Inc ($KOSE:372910)
Hancom Lifecare Inc is a South Korean pharmaceutical and medical device company engaged in the development, manufacture, and sale of healthcare products. With a market cap of 168.54B as of 2023, Hancom Lifecare is one of the largest publicly traded companies in South Korea. Its Return on Equity (ROE) of 1.19% demonstrates the company’s effectiveness in leveraging its assets to generate profit. Additionally, the company has been able to utilize its financial resources to create a diversified portfolio of products as well as expand its reach in the global markets.
– Shanghai Weaver Network Co Ltd ($SHSE:603039)
Shanghai Weaver Network Co Ltd is a Chinese internet technology company that provides a variety of services, including online and mobile advertising, gaming, search engine, and e-commerce. The company has a market capitalization of 13.45 billion as of 2023, which reflects the value of the company’s outstanding shares. Additionally, the company has a Return on Equity (ROE) of 9.57%, indicating that the company is generating strong returns on its shareholders’ investments. This suggests that the company is profitable and a good investment option.
– Wondershare Technology Group Co Ltd ($SZSE:300624)
Wondershare Technology Group Co Ltd is a Chinese software and technology company that specializes in providing digital solutions for media, business and individuals. As of 2023, the company boasts a market cap of 4B, a representation of its overall financial strength and market dominance. Additionally, the company has an impressive Return on Equity of 5.25%, which is a measure of profitability and indicates that the company is managing its assets efficiently and effectively. Wondershare Technology Group Co Ltd is a leader in providing digital solutions, and continues to grow and expand its presence in the industry.
Summary
Recently, Nomura has raised the price target for BEIJING KINGSOFT OFFICE SOFTWARE to 316 Yuan, while maintaining a neutral rating. Despite the positive outlook from Nomura, the stock price of BEIJING KINGSOFT OFFICE SOFTWARE moved down on the same day. Investing in BEIJING KINGSOFT OFFICE SOFTWARE is risky as their financial performance has been mixed in the past few months with revenues rising but profits declining. Further, the company is currently facing competitive pressures from other software firms and needs to develop new products to keep up with the evolving market.
Investors should also consider macroeconomic factors such as monetary policy, currency fluctuations, and political instability that may impact the company’s performance. Therefore, it is important to research and understand all the factors before making an investing decision.
