Kingsoft Corp Ltd (HK:3888)
:3888
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Kingsoft
(3888)
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Rating:67Neutral
Price Target:
HK$26.00
▼(-6.61% Downside)
Action:ReiteratedDate:04/25/26
The score is driven primarily by strong financial resilience (high gross margins and a low-leverage balance sheet) and constructive earnings-call momentum in Office/WPS and AI with a large cash buffer. These positives are tempered by weakening 2025 top-line trends, operating margin and cash-flow pressure, and a technically weak chart setup (below key moving averages with negative MACD). Valuation is reasonable but not compelling given the mixed near-term fundamentals.
Positive Factors
High gross margins and profitability
Consistently high gross margins (~81–83%) provide structural earnings resilience, allowing the company to absorb top-line volatility and fund R&D/marketing. The rebound from a 2022 loss to sustained profitability improves cash generation capacity and long-term investment flexibility.
Negative Factors
Group revenue decline
A consolidated top‑line decline (-6% YoY) reduces scale and hurts operating leverage. Persistent or extended revenue weakness constrains the company's ability to convert fixed investments into margin expansion and heightens reliance on cost control or one‑offs to sustain profits.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins and profitability
Consistently high gross margins (~81–83%) provide structural earnings resilience, allowing the company to absorb top-line volatility and fund R&D/marketing. The rebound from a 2022 loss to sustained profitability improves cash generation capacity and long-term investment flexibility.
Read all positive factors
Kingsoft (3888) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$31.83B
Dividend Yield0.48%
Average Volume (3M)18.49M
Price to Earnings (P/E)9.3
Beta (1Y)1.22
Revenue Growth-6.10%
EPS Growth25.65%
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 Ratio0.80
Price to Book (P/B)1.35
Price to Sales (P/S)3.72
P/FCF Ratio15.52
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$33.14Price Target Upside19.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.95
Revenue Forecast (FY)HK$10.51B
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 makes money through multiple operating segments:
1) Office software (WPS / office productivity)
- Subscription and licensing: The office segment generates revenue from selling software subscriptions and licenses for WPS Office and relate...
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
74
Positive
Balance Sheet
88
Very Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.35B | 9.43B | 10.32B | 8.53B | 7.64B | 6.37B |
| Gross Profit | 8.57B | 7.66B | 8.58B | 7.03B | 6.18B | 5.21B |
| EBITDA | 3.84B | 1.73B | 3.83B | 1.90B | 1.65B | 1.50B |
| Net Income | 1.69B | 1.95B | 1.55B | 483.46M | -6.05B | 395.33M |
Balance Sheet | ||||||
| Total Assets | 37.47B | 39.55B | 38.28B | 35.19B | 31.89B | 36.54B |
| Cash, Cash Equivalents and Short-Term Investments | 25.15B | 27.08B | 26.58B | 23.86B | 21.33B | 19.09B |
| Total Debt | 32.53M | 25.26M | 3.02B | 2.84B | 2.80B | 2.45B |
| Total Liabilities | 6.28B | 6.89B | 9.87B | 8.62B | 7.73B | 7.74B |
| Stockholders Equity | 25.12B | 26.05B | 22.46B | 21.29B | 19.50B | 24.78B |
Cash Flow | ||||||
| Free Cash Flow | 3.41B | 2.26B | 4.16B | 3.01B | 2.06B | 1.92B |
| Operating Cash Flow | 3.88B | 2.57B | 4.59B | 3.49B | 2.57B | 2.22B |
| Investing Cash Flow | 181.50M | -1.18B | -8.52B | -6.48B | 4.42B | -1.61B |
| Financing Cash Flow | -1.89B | -1.89B | -1.08B | 655.86M | -619.04M | -479.61M |
Kingsoft Technical Analysis
Neutral
27.84
Price Trends
25.24
Negative
27.42
Negative
30.80
Negative
Market Momentum
-0.39
Negative
52.31
Neutral
80.19
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3888, the sentiment is Neutral. The current price of 27.84 is above the 20-day moving average (MA) of 23.47, above the 50-day MA of 25.24, and below the 200-day MA of 30.80, indicating a neutral trend. The MACD of -0.39 indicates Negative momentum. The RSI at 52.31 is Neutral, neither overbought nor oversold. The STOCH value of 80.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$3.55B | 7.47 | 17.91% | 3.82% | -4.19% | 0.41% | |
73 Outperform | HK$553.91B | 18.22 | 22.14% | 2.22% | 6.96% | 14.02% | |
69 Neutral | HK$30.59B | 18.73 | 44.75% | 1.18% | 14.94% | 86.33% | |
67 Neutral | HK$31.83B | 9.26 | 8.02% | 0.48% | -6.10% | 25.65% | |
66 Neutral | HK$70.08B | 35.85 | 8.04% | ― | 13.20% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
48 Neutral | HK$4.58B | 33.82 | 2.70% | 8.76% | -26.02% | -51.13% |
* Communication Services Sector Average
HK:3888
Kingsoft
22.80
-18.21
-44.41%
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Kingsoft Corporate Events
Kingsoft Office Posts Surge in Q1 2026 Profit and Revenue
Apr 23, 2026
Kingsoft Corporation’s key subsidiary Beijing Kingsoft Office Software reported strong growth for the quarter ended 31 March 2026, underlining the group’s strengthening position in office productivity software. The unit’s revenue...
Kingsoft Office Forecasts Strong Revenue Growth and Profit Surge for Q1 2026
Apr 13, 2026
Beijing Kingsoft Office Software, a subsidiary of Kingsoft Corporation listed on the SSE STAR Market, has issued an estimate of its financial results for the first quarter of 2026 under PRC Accounting Standards. The company operates in the office ...
Kingsoft Refreshes Board With AI Expert as Independent Director
Mar 26, 2026
Kingsoft Corporation Limited, a Hong Kong-listed technology group, operates in the software and digital services space, where strong board governance and independent oversight are key to maintaining market confidence. The company’s governanc...
Kingsoft Announces Board and Committee Structure Update
Mar 26, 2026
Kingsoft Corporation Limited has announced the current composition of its board of directors and clarified the roles of each member. The board is led by non-executive chairman Jun Lei and chief executive officer and executive director Tao Zou, alo...
Kingsoft Office Posts Double-Digit Revenue and Profit Growth in 2025
Mar 25, 2026
Kingsoft Corporation has disclosed key 2025 financial metrics for its listed subsidiary Beijing Kingsoft Office Software, which reported solid top-line and bottom-line growth. The office software developer generated revenue of RMB 5.93 billion, up...
Kingsoft Moves to Modernize Governance With New Memorandum and Articles
Mar 25, 2026
Kingsoft Corporation has proposed a comprehensive overhaul of its constitutional documents, seeking shareholder approval to replace its existing memorandum and articles of association with a newly amended and restated version. The move is designed...
Kingsoft Profits Rise Despite Revenue Decline and Lower Dividend Payout
Mar 25, 2026
Kingsoft reported audited results for the year ended 31 December 2025, showing revenue of RMB 9.68 billion, down 6% year on year, while operating profit fell 51% to RMB 1.78 billion as margins came under pressure. Despite weaker top-line performan...
Kingsoft Declares Final HKD 0.13 Dividend for 2025 With June Payout
Mar 25, 2026
Kingsoft Corporation Limited has announced a final ordinary cash dividend of HKD 0.13 per share for the financial year ended 31 December 2025, with payment scheduled for 18 June 2026, subject to shareholder approval on 28 May 2026. The ex-dividend...
Kingsoft Sets March Board Meeting to Approve 2025 Results and Consider Final Dividend
Mar 9, 2026
Kingsoft Corporation Limited has scheduled a board meeting for 25 March 2026 to review and approve the audited financial results for the year ended 31 December 2025. The board will also consider recommending a final dividend, signaling potential r...
Kingsoft Flags Solid 2025 Preliminary Earnings at Office Software Subsidiary
Feb 27, 2026
Kingsoft has alerted investors to the preliminary 2025 results of its listed subsidiary Beijing Kingsoft Office Software, which reported solid growth in both revenue and profit. The disclosure, made in Hong Kong with detailed figures released in S...
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.