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Kingsoft Corp Ltd (HK:3888)
:3888
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Kingsoft (3888) AI Stock Analysis

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HK:3888

Kingsoft

(3888)

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Neutral 63 (OpenAI - 4o)
Rating:63Neutral
Price Target:
HK$33.00
▲(7.42% Upside)
Kingsoft's overall stock score reflects a balance of strong financial health and operational efficiency against a backdrop of declining revenues and bearish technical indicators. The company's strategic focus on AI and internationalization provides growth potential, but current market sentiment and valuation metrics suggest caution.

Kingsoft (3888) vs. iShares MSCI Hong Kong ETF (EWH)

Kingsoft Business Overview & Revenue Model

Company DescriptionKingsoft Corporation Limited, an investment holding company, engages in the design, research and development, sale, and marketing of the office software products and services of WPS Office in Mainland China, Hong Kong, and internationally. It operates in two segments, Office Software and Services, and Entertainment Software and Others. The company is also involved in the research and development of games, and the provision of PC games and mobile games services. In addition, it engages in the research, development, operation, and distribution of games; marketing and operation of SMS, and wireless service of online games and application software; sale and operation of office application software; marketing and operation of entertainment software products; and research, development, and distribution of consumer application software. The company was founded in 1988 and is headquartered in Tsim Sha Tsui, Hong Kong.
How the Company Makes MoneyKingsoft generates revenue through multiple streams, with significant contributions from its software licensing, cloud services, and online gaming sectors. The company's WPS Office suite earns money through subscription models, software sales, and advertisements. Kingsoft Cloud provides cloud infrastructure and services, generating revenue through usage-based billing and long-term contracts with enterprise clients. Additionally, its online gaming division earns from in-game purchases, subscriptions, and advertising. Partnerships with other tech firms and enterprises further enhance its revenue potential, along with continuous innovation and expansion into new markets.

Kingsoft Earnings Call Summary

Earnings Call Date:Nov 19, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Mar 25, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook for Kingsoft Corporation. While there are significant achievements in the office software and services business, especially in WPS 365 and software localization projects, the overall performance is hindered by declines in total revenue, online games revenue, and operating profit. Increased expenses and a marked decrease in profit also contribute to a challenging financial landscape.
Q3-2025 Updates
Positive Updates
Growth in Office Software and Services Business
Revenue from the office software and services business increased by 26% year-over-year and 12% quarter-over-quarter to RMB 1,521 million. This growth was attributed to the WPS software, WPS 365, and WPS individual business.
WPS 365 Business Expansion
WPS 365 business experienced significant growth, with revenue reaching RMB 201 million, a 72% increase year-on-year due to enhanced collaboration and AI product offerings.
WPS Software Business Localization Projects
WPS software business revenue reached RMB 391 million, up 51% year-on-year, driven by robust localization projects and AI-enabled products for government scenarios.
Increase in WPS Office Active Devices
As of September 13, 2025, WPS Office global monthly active devices reached 669 million, an increase of 9% year-on-year. The PC version grew by 14% to 316 million, and the mobile version increased by 5% to 353 million.
Negative Updates
Decline in Total Revenue
Kingsoft's total revenue reached RMB 2.419 billion, a year-on-year decrease of 17% despite a quarter-on-quarter increase of 5%.
Decrease in Online Games Revenue
Revenue from the online games and other business decreased by 47% year-over-year and 6% quarter-over-quarter to RMB 898 million, primarily due to lower contributions from existing games and new games still in development.
Decline in Operating Profit
Operating profit before share-based compensation costs decreased by 70% year-over-year and 21% quarter-over-quarter to RMB 357 million.
Increased Expenses
Research and development costs increased by 4% year-over-year and 5% quarter-over-quarter, while selling and distribution expenses increased by 55% year-over-year and 33% quarter-over-quarter.
Profit Decline
Profit attributable to owners of the parent was RMB 213 million for this quarter, compared with profit of RMB 413 million and RMB 532 million for the third quarter of 2024 and the second quarter of 2025.
Company Guidance
During Kingsoft Corporation's Third Quarter 2025 Earnings Conference Call, the company provided guidance highlighting several key financial metrics and strategic priorities. Total revenue for the third quarter of 2025 was reported at RMB 2.419 billion, marking a year-on-year decrease of 17% but a quarter-on-quarter increase of 5%. The office software and services segment saw a significant revenue growth of 26% year-over-year to RMB 1,521 million, driven by the robust performance of WPS software, WPS 365, and the WPS individual business. Conversely, the online games segment experienced a 47% year-over-year decline in revenue to RMB 898 million. Key performance indicators for WPS Office included a 9% year-on-year increase in global monthly active devices to 669 million. The company emphasized its focus on AI collaboration and internationalization, with notable progress in AI-powered products and a strong cash position of RMB 26 billion as of September 30, 2025. Operating profit before share-based compensation costs decreased by 70% year-on-year to RMB 357 million, while research and development costs rose by 4% year-over-year to RMB 900 million, reflecting higher investments in AI and collaboration products.

Kingsoft Financial Statement Overview

Summary
Kingsoft demonstrates strong financial health with robust profitability margins and a solid balance sheet. While recent revenue and free cash flow declines pose challenges, the company maintains operational efficiency and low leverage, positioning it well for future growth opportunities.
Income Statement
75
Positive
Kingsoft's income statement shows strong gross profit margins consistently above 80%, indicating effective cost management. However, the recent TTM data reflects a slight revenue decline of 1.58%, contrasting with previous growth trends. Net profit margins have improved to 16.32% in the TTM, showing recovery from past losses. EBIT and EBITDA margins remain robust, suggesting operational efficiency.
Balance Sheet
80
Positive
The balance sheet is solid with a very low debt-to-equity ratio of 0.0013 in the TTM, indicating minimal leverage and financial stability. Return on equity has improved to 7.34%, reflecting better profitability. The equity ratio is strong, showcasing a well-capitalized position with a significant portion of assets funded by equity.
Cash Flow
70
Positive
Cash flow analysis reveals a decline in free cash flow growth by 8.47% in the TTM, which could be a concern. However, the operating cash flow to net income ratio is healthy at 0.77, indicating good cash generation relative to net income. The free cash flow to net income ratio of 0.88 suggests efficient cash conversion.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.35B10.32B8.53B7.64B6.37B5.59B
Gross Profit8.57B8.58B7.03B6.18B5.21B4.68B
EBITDA3.84B3.83B1.90B1.65B1.50B2.67B
Net Income1.69B1.55B483.46M-6.05B395.33M10.05B
Balance Sheet
Total Assets37.47B38.28B35.19B31.89B36.54B35.04B
Cash, Cash Equivalents and Short-Term Investments25.15B26.58B23.86B21.33B19.09B17.96B
Total Debt32.53M3.02B2.84B2.80B2.45B2.42B
Total Liabilities6.28B9.87B8.62B7.73B7.74B6.82B
Stockholders Equity25.12B22.46B21.29B19.50B24.78B24.66B
Cash Flow
Free Cash Flow3.41B4.16B3.01B2.06B1.92B2.46B
Operating Cash Flow3.88B4.59B3.49B2.57B2.22B2.99B
Investing Cash Flow181.50M-8.52B-6.48B4.42B-1.61B-7.57B
Financing Cash Flow-1.89B-1.08B655.86M-619.04M-479.61M1.88B

Kingsoft Technical Analysis

Technical Analysis Sentiment
Negative
Last Price30.72
Price Trends
50DMA
33.40
Negative
100DMA
33.99
Negative
200DMA
36.66
Negative
Market Momentum
MACD
-0.56
Positive
RSI
37.94
Neutral
STOCH
15.42
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3888, the sentiment is Negative. The current price of 30.72 is below the 20-day moving average (MA) of 32.37, below the 50-day MA of 33.40, and below the 200-day MA of 36.66, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 37.94 is Neutral, neither overbought nor oversold. The STOCH value of 15.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3888.

Kingsoft Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
HK$2.40B7.2112.02%15.22%-27.66%-51.96%
71
Outperform
HK$93.72B405.655.32%16.59%
70
Outperform
$4.41B7.6917.91%3.80%4.02%-23.98%
63
Neutral
$46.63B24.517.25%0.43%15.08%84.20%
61
Neutral
HK$34.02B22.4957.06%0.59%51.87%4031.49%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
39
Underperform
HK$1.15B-0.41-57.29%-36.80%-666.80%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3888
Kingsoft
30.72
-1.09
-3.41%
HK:0799
IGG
3.71
0.11
3.11%
HK:9626
Bilibili, Inc. Class Z
202.00
52.50
35.12%
HK:2400
XD, Inc.
65.75
43.49
195.37%
HK:2660
Zengame Technology Holding Ltd.
2.35
-0.20
-7.84%
HK:0302
CMGE Technology Group Limited
0.35
-0.49
-58.43%

Kingsoft Corporate Events

Kingsoft Corp Reports Q3 2025 Financial Results
Nov 20, 2025

Kingsoft Corporation Limited, a company based in the Cayman Islands, is engaged in the development and provision of office software and services, as well as online games. The company is listed on the Hong Kong Stock Exchange and is known for its WPS Office suite and various gaming products.

Kingsoft Reports Decline in Q3 2025 Financials but Growth in WPS Office Users
Nov 19, 2025

Kingsoft Corporation Limited reported its unaudited financial results for the three months ending September 30, 2025, showing a decline in revenue and profits compared to the previous year. Despite a 17% year-on-year decrease in revenue and a 76% drop in operating profit, the company saw a 9% increase in the monthly active devices of WPS Office globally, indicating growth in its user base.

The most recent analyst rating on (HK:3888) stock is a Buy with a HK$37.00 price target. To see the full list of analyst forecasts on Kingsoft stock, see the HK:3888 Stock Forecast page.

Kingsoft Establishes Nomination Committee to Strengthen Governance
Nov 19, 2025

Kingsoft Corporation Limited has announced the establishment of a Nomination Committee, which will be responsible for overseeing the nomination of board members. The committee is tasked with reviewing the board’s structure, identifying qualified candidates for directorships, assessing the independence of non-executive directors, and making recommendations on appointments and succession planning. This move is expected to enhance the company’s governance and strategic alignment.

The most recent analyst rating on (HK:3888) stock is a Buy with a HK$37.00 price target. To see the full list of analyst forecasts on Kingsoft stock, see the HK:3888 Stock Forecast page.

Kingsoft Schedules Board Meeting to Review Quarterly Results
Nov 3, 2025

Kingsoft Corporation Limited has announced a board meeting scheduled for November 19, 2025, to review and approve the unaudited quarterly results for the period ending September 30, 2025. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and strategic direction.

The most recent analyst rating on (HK:3888) stock is a Buy with a HK$37.00 price target. To see the full list of analyst forecasts on Kingsoft stock, see the HK:3888 Stock Forecast page.

Kingsoft Office Reports Strong Financial Growth in 2025
Oct 27, 2025

Kingsoft Corporation Limited announced key financial results for its subsidiary, Beijing Kingsoft Office Software, Inc., for the nine months ending September 30, 2025. The report highlights a significant increase in revenue and profits, with revenue rising by 15.21% to RMB 4,178,385 thousand and net profit attributable to shareholders increasing by 13.32% to RMB 1,178,438 thousand. The company’s total assets grew by 4.53% compared to the end of last year, indicating a strong financial performance and positive cash flow from operations. These results suggest a robust market position and potential positive implications for stakeholders.

The most recent analyst rating on (HK:3888) stock is a Hold with a HK$36.00 price target. To see the full list of analyst forecasts on Kingsoft stock, see the HK:3888 Stock Forecast page.

Kingsoft Corp’s Earnings Call: Growth Amid Challenges
Sep 1, 2025

The recent earnings call for Kingsoft Corp revealed a mixed sentiment, showcasing robust growth in the office software segment and successful global expansions, particularly in AI integration and gaming. However, challenges were noted in the gaming sector, with revenue declines and specific game performance issues, alongside rising operational costs.

Kingsoft Corp Reports Stable Revenue Growth Amid Challenges
Aug 21, 2025

Kingsoft Corporation Limited, a company listed on the Hong Kong Stock Exchange, is primarily engaged in the development and provision of office software and services, as well as online games. The company operates in the technology sector, focusing on products like WPS Office and various gaming services.

Kingsoft Office Reports Strong Financial Growth in H1 2025
Aug 20, 2025

Kingsoft Corporation Limited announced key financial results for its subsidiary, Beijing Kingsoft Office Software, Inc., for the first half of 2025. The company reported a 10.12% increase in revenue compared to the same period last year, reaching RMB 2,657,122,000. Net profit attributable to shareholders rose by 3.57%, and net cash flow from operating activities increased by 17.51%. These results indicate a positive financial performance and suggest a stable growth trajectory for Kingsoft Office, enhancing its market position and potentially benefiting its stakeholders.

The most recent analyst rating on (HK:3888) stock is a Hold with a HK$37.00 price target. To see the full list of analyst forecasts on Kingsoft stock, see the HK:3888 Stock Forecast page.

Kingsoft Reports Modest Profit Growth Amid Software Gains
Aug 20, 2025

Kingsoft Corporation Limited announced its unaudited financial results for the three and six months ending June 30, 2025. The company reported a slight increase in revenue for the six-month period, driven by its office software and services segment, despite a decline in its online games revenue. The overall profit for the period showed a modest increase, with significant contributions from finance income and other gains, although operating profit decreased due to higher research and development costs and selling expenses. The results reflect Kingsoft’s strategic focus on enhancing its software offerings while navigating challenges in the gaming sector.

The most recent analyst rating on (HK:3888) stock is a Hold with a HK$37.00 price target. To see the full list of analyst forecasts on Kingsoft stock, see the HK:3888 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 20, 2025