Kingsoft (HKSE:03888, Financial) is a technology company with three main businesses: online gaming, cloud services and software services. The company's online gaming business provides a stable and growing source of cash fow. Its cloud services business supports companies with growing data and storage needs, including major clients in the social media and entertainment industries. Kingsoft's software services business is growing beyond its traditional presence in enterprise operating systems into consumer facing software services where penetration of paying users is currently very low with room to grow. In our view, Kingsoft trades at a deep discount to the sum of the parts valuations for each of the individual businesses.
From the Matthews China Fund (Trades, Portfolio)'s fourth-quarter 2020 commentary.
