Kingsoft is a leading Internet company in China. In FY13-FY17, the company achieved revenue CAGR of 40%. Looking forward, it will focus on three major business segments: games, cloud computing and office software. We highlight that the company 1) has a respected-branded game studio with classic IPs continuing to contribute; 2) is a pioneer in game cloud and video cloud fields, to expand to more vertical fields, 3) owning office software business which leads the domestic market with potential value release after IPO on Shenzhen Exchange. We initiate with a target price of HK$18.8, BUY rating.