Kingsoft (3888-hk): Potentially set for a New Rally

Kingsoft (3888-hk), a software company, announced on Tuesday that it swung to a 1H net profit from a net loss in the prior year...

Tech (2)

Kingsoft (3888-hk), a software company, announced on Tuesday that it swung to a 1H net profit of 9.15 billion yuan from a net loss of 1.42 billion yuan in the prior-year period and operating profit jumped to 549 million yuan from 165 million yuan. Also, revenue was up 48.6% on year to 1.42 billion yuan.


JPMorgan pointed out that the company's spin-offs of KOS Holdings and Kingsoft Cloud have successfully created more shareholder value and rated the company at "Overweight".


From a technical point of view, Kingsoft shows early signs of an upside breakout on a daily chart. It has broken above a symmetrical triangle pattern after a recent rally, potentially suggesting a start of a new rally. The level at $37.25 might be considered as the nearest support, with prices trending to test the 1st and 2nd resistance at $47.60 and $51.20. Alternatively, a break below $37.25 may trigger a pull-back to test the next support at $34.45.


Source: TradingView, Gain Capital

More from Tech Stocks

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.