Kingsoft (3888) AI Stock Analysis

• Market Cap: $44.51B
• Dividend Yield: 0.41%
• Average Volume (3M): 13.85M
• Price to Earnings (P/E): 23.4
• Beta (1Y): 1.23
• Revenue Growth: 15.08%
• EPS Growth: 84.20%
• Country: HK
• Employees: 8,047
• Sector: Communication Services
• Sector Strength: 96
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.41
• Shares Outstanding: 1,400,425,800
• 10 Day Avg. Volume: 16,012,974
• 30 Day Avg. Volume: 13,852,759
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 3.10
• Enterprise Value/Gross Profit: 3.73
• Enterprise Value/Ebitda: 8.52
• 1Y Price Target: $41.40
• Price Target Upside: 26.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: HK$37.00 ▲(13.50% Upside)

Kingsoft's overall stock score reflects strong financial performance and promising growth in the office software segment, offset by technical analysis indicating bearish trends and challenges in the gaming sector. Valuation is moderate, with a low dividend yield.

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 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 Money

Kingsoft makes money through a diversified revenue model that includes software sales, subscription services, and cloud computing offerings. The primary revenue stream is derived from its office software suite, WPS Office, which is monetized through both subscription fees and advertising. Additionally, the company's entertainment software segment generates income from online gaming services, in-game purchases, and partnerships with other entertainment platforms. Kingsoft's cloud computing division further contributes to its revenue by offering cloud-based solutions and services to businesses, capitalizing on the growing demand for digital transformation. Strategic partnerships and collaborations with other technology firms enhance its market reach and support its financial performance.

Kingsoft Financial Statement Overview

Summary

Kingsoft demonstrates strong financials with robust revenue and profit growth, high gross profit margins, and effective cash flow management. The balance sheet is stable with conservative leverage, although monitoring debt levels is advised.

Income Statement

Kingsoft has demonstrated strong revenue growth with a remarkable increase from 2023 to 2024. The gross profit margin is high at approximately 83%, indicating efficient cost management. The net profit margin improved significantly due to a substantial rise in net income. EBIT and EBITDA margins are also robust, reflecting good operational efficiency.

Balance Sheet

The balance sheet shows a healthy equity ratio at around 59%, suggesting solid financial stability. The company maintains a low debt-to-equity ratio, indicating conservative leverage use. Return on Equity (ROE) is strong, showcasing effective use of shareholders' capital. However, monitoring the slight increase in total debt is advisable.

Cash Flow

Kingsoft has shown impressive free cash flow growth, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, supporting the sustainability of earnings. The free cash flow to net income ratio reflects efficient cash utilization.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.32B	8.53B	7.64B	6.37B	5.59B
Gross Profit	8.58B	7.03B	6.18B	5.21B	4.68B
EBITDA	3.83B	1.90B	1.15B	1.50B	2.67B
Net Income	1.55B	483.46M	-5.34B	952.84M	1.80B
Balance Sheet
Total Assets	38.28B	35.19B	31.89B	36.54B	35.04B
Cash, Cash Equivalents and Short-Term Investments	26.58B	23.86B	21.33B	19.09B	17.96B
Total Debt	3.02B	2.84B	2.80B	2.45B	2.42B
Total Liabilities	9.87B	8.62B	7.73B	7.74B	6.82B
Stockholders Equity	22.46B	21.29B	19.50B	24.78B	24.66B
Cash Flow
Free Cash Flow	4.16B	3.01B	2.06B	1.92B	2.46B
Operating Cash Flow	4.59B	3.49B	2.57B	2.22B	2.99B
Investing Cash Flow	-8.52B	-6.48B	4.42B	-1.61B	-7.57B
Financing Cash Flow	-1.08B	655.86M	-619.04M	-479.61M	1.88B

Kingsoft Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 32.6 is below the 20-day moving average (MA) of 34.06, below the 50-day MA of 34.58, and below the 200-day MA of 36.48, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 41.27 is Neutral, neither overbought nor oversold. The STOCH value of 10.13 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3888	69 Neutral	$44.51B	23.39	7.25%	0.41%	15.08%	84.20%
Sector *	60 Neutral	$46.60B	4.09	-13.11%	4.12%	1.85%	-42.71%
IGGGF	―	$655.83M	8.89	17.91%	2.86%	―	―
2660	74 Outperform	HK$2.72B	8.18	12.02%	5.62%	-27.66%	-51.96%
2400	67 Neutral	HK$38.26B	25.67	57.06%	0.51%	51.87%	4031.49%
9626	65 Neutral	HK$71.38B	312.19	1.58%	―	22.43%	―
0302	49 Neutral	HK$1.42B	―	-57.29%	―	-36.80%	-666.80%

Kingsoft Corporate Events

Kingsoft Corporation Schedules Board Meeting for Interim Results

Kingsoft Corporation Limited has announced a board meeting scheduled for August 20, 2025, to discuss and approve the interim financial results for the first half of the year. This meeting is significant as it will provide insights into the company’s financial health and operational performance, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:3888) stock is a Buy with a HK$43.30 price target. To see the full list of analyst forecasts on Kingsoft stock, see the HK:3888 Stock Forecast page.

Kingsoft Grants Restricted Shares to Key Employees Under Incentive Scheme

Kingsoft Corporation Limited announced the grant of 2,791,000 restricted shares to 198 employees under the BKOS 2025 Share Incentive Scheme. This move aims to recognize the contributions of key personnel and retain talent within the BKOS Group, enhancing the company’s operational stability and competitive positioning in the market.

The most recent analyst rating on (HK:3888) stock is a Buy with a HK$43.30 price target. To see the full list of analyst forecasts on Kingsoft stock, see the HK:3888 Stock Forecast page.

Kingsoft Corporation Successfully Passes All Resolutions at 2025 AGM

Kingsoft Corporation Limited held its Annual General Meeting on May 29, 2025, where all proposed resolutions were successfully passed by shareholder vote. Key decisions included the approval of the 2024 financial statements, the declaration of a final dividend, the re-election of directors, and the reappointment of Ernst & Young as auditors. These outcomes reflect strong shareholder support and are expected to positively impact the company’s governance and financial strategies moving forward.

The most recent analyst rating on (HK:3888) stock is a Buy with a HK$43.30 price target. To see the full list of analyst forecasts on Kingsoft stock, see the HK:3888 Stock Forecast page.

Kingsoft Reports Q1 2025 Financial Results with Revenue Growth Amid Profit Decline

Kingsoft Corporation Limited announced its unaudited financial results for the first quarter of 2025, showing a 9% year-on-year increase in revenue to RMB 2,337,995,000. Despite this revenue growth, the company experienced a decline in operating profit and profit attributable to owners, with a notable decrease in basic and diluted earnings per share. The operational highlights reveal an 8% increase in the monthly active devices of WPS Office globally, reaching 647 million, and a 17% year-on-year growth in accumulated paying subscribers in Mainland China, totaling 41.7 million.

The most recent analyst rating on (HK:3888) stock is a Buy with a HK$43.30 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 Q1 2025 Results

Kingsoft Corporation Limited has announced a board meeting scheduled for May 28, 2025, to review and approve the unaudited quarterly results for the first quarter ending March 31, 2025. This meeting is significant as it will provide insights into the company’s financial performance, potentially impacting its market positioning and stakeholder confidence.