Kingsoft Corp Ltd (HK:3888)
:3888
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Kingsoft
(3888)
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Rating:62Neutral
Price Target:
HK$34.00
▲(22.13% Upside)
Action:ReiteratedDate:11/21/25
Kingsoft's overall stock score reflects a balance of strong financial health and operational efficiency against bearish technical indicators and a mixed earnings outlook. The company's robust office software growth is offset by challenges in the gaming segment and increased expenses, leading to a moderate valuation.
Positive Factors
Balance Sheet Strength
Extremely low leverage provides durable financial flexibility: it lowers bankruptcy risk, reduces interest burden, and allows the company to fund R&D, M&A or price competition from cash reserves. This structural strength supports long-term investment without refinancing stress.
Negative Factors
Declining Total Revenue
A 17% YoY revenue decline reflects weakening top-line momentum that can erode operating leverage and limit reinvestment capacity. If persistent, shrinking revenue undermines scale benefits in software and cloud segments and raises execution risk for expansion and product investment plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Extremely low leverage provides durable financial flexibility: it lowers bankruptcy risk, reduces interest burden, and allows the company to fund R&D, M&A or price competition from cash reserves. This structural strength supports long-term investment without refinancing stress.
Read all positive factors
Kingsoft (3888) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$33.23B
Dividend Yield0.48%
Average Volume (3M)18.49M
Price to Earnings (P/E)9.3
Beta (1Y)1.23
Revenue Growth-0.11%
EPS Growth12.80%
CountryHK
Employees8,047
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)0.80
Shares Outstanding1,400,425,800
10 Day Avg. Volume28,842,110
30 Day Avg. Volume18,494,799
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)1.96
Price to Sales (P/S)4.27
P/FCF Ratio10.58
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$41.13Price Target Upside47.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.91
Revenue Forecast (FY)HK$10.43B
Kingsoft Business Overview & Revenue Model
Company Description
Kingsoft 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 oper...
How the Company Makes Money
Kingsoft 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...
Kingsoft Earnings Call Summary
Earnings Call Date:Mar 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 26, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: strong execution and clear momentum in the Office/WPS segment (notably AI adoption, paid users growth, WPS 365 ad growth and international traction), successful new game launches with large early user traction, and a very strong cash balance. Offsetting these positives were a decline in overall group revenue (-6% YoY), a significant contraction in online games revenue (-28% YoY), rising operating costs (R&D, marketing, admin and share-based comp), weaker operating profit before one-offs, and a drop in net cash from operations. There are also volatile one-offs (large deemed disposal gain) and some inconsistencies in reported growth percentages that cloud the narrative. Overall, the positive momentum in Office/AI and liquidity are meaningful strengths, but material headwinds in gaming and cost/margin pressure balance those gains.Positive Updates
WPS / Office Software Revenue Growth
Office software & services revenue reported at RMB 5.93 billion for 2025. Management highlighted strong growth in the Office segment (Tao: +16% YoY; Finance section also reported the same RMB 5,929 million figure with a stated +60% YoY). WPS software business annual revenue was RMB 1.46 billion, up 15% YoY.
Negative Updates
Group Revenue Decline (Full Year)
Group total revenue for 2025 decreased 6% YoY to RMB 9.68 billion, indicating top-line pressure at the consolidated level despite strength in office products.
Read all updates
Q4-2025 Updates
Positive
Negative
WPS / Office Software Revenue Growth
Office software & services revenue reported at RMB 5.93 billion for 2025. Management highlighted strong growth in the Office segment (Tao: +16% YoY; Finance section also reported the same RMB 5,929 million figure with a stated +60% YoY). WPS software business annual revenue was RMB 1.46 billion, up 15% YoY.
Read all positive updates
Company Guidance
Management guided that Kingsoft will deepen AI‑agent technology across full‑scenario office, strengthen WPS 365 as an intelligent collaboration platform and accelerate internationalization while the games division will prioritize premium content, global publishing, sustaining classic IPs and new genres; they highlighted key metrics including FY2025 group revenue RMB 9,683 million (‑6% YoY), office software & services RMB 5,929 million (management cited growth of both +16% and +60% YoY in different remarks), online games & others RMB 3,754 million (‑28% YoY), Q4 revenue RMB 2,618 million (‑6% YoY, +8% QoQ) split 67% office / 33% games, Q4 office revenue RMB 1,750 million (+30% YoY, +50% QoQ), WPS individual annual revenue RMB 3,630 million (+10% YoY; Q4 RMB 918 million, +14% YoY), WPS AI MAU >18 million (+307% YoY), overseas PC monthly active devices 42.5 million (+54% YoY), WPS 365 ad revenue RMB 720 million (+65% YoY; Q4 RMB 210 million, ≈+16% YoY), WPS software annual RMB 1,460 million (+15% YoY; Q4 RMB 530 million, +15% YoY), Goose Goose Duck (launched Jan 7, 2026) >5 million new users on launch day and >30 million cumulative new users (ranked #1 iOS free most of the past two months, ~3 million concurrent cited), Starsand Island early access Feb 2026 with official launch targeted H2 2026, two Angry Birds titles planned for China in 2026, FY gross margin 81% (‑2 ppt YoY; Q4 82%, ‑2 ppt YoY, +2 ppt QoQ), operating profit before SBC FY RMB 2,072 million (‑47% YoY; Q4 RMB 606 million, ‑48% YoY, +70% QoQ), profit attributable to owners FY RMB 2,004 million (Q4 RMB 975 million), profit excl. SBC Q4 RMB 1,026 million (net profit margin excl. SBC 39% in Q4), cash resources RMB 27,000 million at Dec 31, 2025, operating cash flow RMB 2,292 million and capex RMB 342 million—with management emphasizing phased product/version rollouts, stability before commercialization (for Goose Goose Duck) and stepped monetization and ecosystem expansion across products.Kingsoft Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
80
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.35B | 10.32B | 8.53B | 7.64B | 6.37B | 5.59B |
| Gross Profit | 8.57B | 8.58B | 7.03B | 6.18B | 5.21B | 4.68B |
| EBITDA | 3.84B | 3.83B | 1.90B | 1.65B | 1.50B | 2.67B |
| Net Income | 1.69B | 1.55B | 483.46M | -6.05B | 395.33M | 10.05B |
Balance Sheet | ||||||
| Total Assets | 37.47B | 38.28B | 35.19B | 31.89B | 36.54B | 35.04B |
| Cash, Cash Equivalents and Short-Term Investments | 25.15B | 26.58B | 23.86B | 21.33B | 19.09B | 17.96B |
| Total Debt | 32.53M | 3.02B | 2.84B | 2.80B | 2.45B | 2.42B |
| Total Liabilities | 6.28B | 9.87B | 8.62B | 7.73B | 7.74B | 6.82B |
| Stockholders Equity | 25.12B | 22.46B | 21.29B | 19.50B | 24.78B | 24.66B |
Cash Flow | ||||||
| Free Cash Flow | 3.41B | 4.16B | 3.01B | 2.06B | 1.92B | 2.46B |
| Operating Cash Flow | 3.88B | 4.59B | 3.49B | 2.57B | 2.22B | 2.99B |
| Investing Cash Flow | 181.50M | -8.52B | -6.48B | 4.42B | -1.61B | -7.57B |
| Financing Cash Flow | -1.89B | -1.08B | 655.86M | -619.04M | -479.61M | 1.88B |
Kingsoft Technical Analysis
Negative
27.84
Price Trends
26.27
Negative
28.03
Negative
31.36
Negative
Market Momentum
-0.87
Negative
45.92
Neutral
32.63
Neutral
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 27.84 is above the 20-day moving average (MA) of 23.92, above the 50-day MA of 26.27, and below the 200-day MA of 31.36, indicating a bearish trend. The MACD of -0.87 indicates Negative momentum. The RSI at 45.92 is Neutral, neither overbought nor oversold. The STOCH value of 32.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3888.
Kingsoft Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | HK$4.15B | 7.47 | 17.91% | 3.82% | 4.02% | -23.98% | |
73 Outperform | HK$548.36B | 18.22 | 24.72% | 2.22% | 5.45% | 32.55% | |
69 Neutral | HK$31.23B | 18.73 | 44.75% | 1.18% | 51.87% | 4031.49% | |
64 Neutral | HK$78.70B | 62.43 | 8.04% | ― | 16.59% | ― | |
62 Neutral | HK$33.23B | 9.26 | 8.02% | 0.48% | -0.11% | 12.80% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
48 Neutral | HK$4.88B | 33.82 | 2.70% | 8.76% | -23.86% | -113.19% |
* Communication Services Sector Average
HK:3888
Kingsoft
23.80
-13.23
-35.73%
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Kingsoft Corporate Events
Kingsoft Renews Three-Year Connected Transaction Framework with Xiaomi
Dec 30, 2025
Kingsoft Corporation has renewed and expanded its framework agreement with Xiaomi Group for a further three years to 31 December 2028, formalising a series of continuing connected transactions between the two companies. Under the new agreement, Ki...
Kingsoft Signs RMB256 Million Connected Lease with Xiaomi-Affiliated Beijing Duokan
Dec 30, 2025
Kingsoft has entered into a six-year connected lease transaction with Beijing Duokan, an affiliated entity of Xiaomi, under which Beijing Duokan will lease office premises and 184 parking spaces in Xiaomi Science and Technology Park in Beijing to ...
Kingsoft Unit BKOS Grants 669,000 Restricted Shares to Key Staff Under 2025 Incentive Scheme
Dec 29, 2025
Kingsoft Corporation has announced that its majority-owned subsidiary Beijing Kingsoft Office Software (BKOS) has granted 669,000 restricted shares to 47 core management and technical employees under the BKOS 2025 Share Incentive Scheme. The award...
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% ...
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 quali...
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...
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 reven...
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.