Nomura expects that the game business of Kanayama Software (03888) may record steady growth, with a 4% compound annual revenue growth in 2024-2026.
The Zhitong Finance App learned that Nomura released a research report stating that it raised the target price of Jinshan Software (03888) by 3%, from HK$32 to HK$33, to maintain the “buy” rating. The subsidiary of Jinshan Software is Jinshan Office (KO), which accounts for 53% of the total revenue of Jinke Software in 2023, and the game business accounts for another 47% of revenue.
According to an earlier report on the Jinshan office, artificial intelligence (AI) is increasingly becoming a growth engine for the software industry, and revenue is expected to grow at a compound annual rate of 28% for the 2024-2026 fiscal year. Nomura also anticipates that the game business may record steady growth, with revenue rising 4% CAGR in 2024-2026, and believes that Jinshan Software can benefit from AI.