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Kingsoft Cloud Holdings Ltd
(3896)
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Rating:48Neutral
Price Target:
HK$5.00
▼(-32.71% Downside)
Action:Reiterated
Date:07/11/26
The score is held down primarily by transitional fundamentals—net losses and fragile free cash flow—despite improving EBITDA and better leverage. Earnings-call commentary adds upside via strong AI-driven growth and margin progress, but this is tempered by margin pressure and very high guided CapEx. Technically, the stock remains below key longer-term moving averages, and valuation support is limited given negative earnings and no dividend yield.
Positive Factors
AI-driven revenue acceleration
AI workloads have become the majority of public cloud billings, with ~90% YoY growth and 50% share. This structural shift to higher-demand AI inference and token services supports sustainable higher-margin revenue mix and long-term platform relevance as customers migrate workloads to inference-heavy cloud.
Negative Factors
Very high capital intensity
A RMB 15–20B CapEx plan signals sustained heavy investment in servers and infrastructure. Over the medium term this will absorb operating cash, raise depreciation, and require disciplined deployment to generate return on invested capital; execution or funding shortfalls could impair growth conversion.
Read all positive and negative factors
Positive Factors
Negative Factors
AI-driven revenue acceleration
AI workloads have become the majority of public cloud billings, with ~90% YoY growth and 50% share. This structural shift to higher-demand AI inference and token services supports sustainable higher-margin revenue mix and long-term platform relevance as customers migrate workloads to inference-heavy cloud.
Read all positive factors
Kingsoft Cloud Holdings Ltd (3896) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$22.30B
Dividend YieldN/A
Average Volume (3M)111.61M
Price to Earnings (P/E)―
Beta (1Y)2.42
Revenue Growth31.44%
EPS Growth56.19%
CountryHK
Employees15,225
SectorTechnology
Sector Strength88
IndustrySoftware - Services
Share Statistics
EPS (TTM)-0.79
Shares Outstanding4,531,784,700
10 Day Avg. Volume82,679,101
30 Day Avg. Volume111,609,710
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.15
Price to Sales (P/S)0.14
P/FCF Ratio-1.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$10.47Price Target Upside40.93% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)-0.19
Revenue Forecast (FY)HK$14.73B
Kingsoft Cloud Holdings Ltd Business Overview & Revenue Model
Company Description
Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations primarily in China. The company's product portfolio includes cloud products, such as infrastructure as a service (IaaS) infrastructure, platform as a service (...
How the Company Makes Money
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Kingsoft Cloud Holdings Ltd Earnings Call Summary
Earnings Call Date:May 27, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Positive
The call presented strong top-line and AI-driven momentum: robust revenue growth (total +~37% YoY), public cloud (+47.5% YoY), AI billings (+~90% YoY), and a large improvement in adjusted EBITDA (+~135% YoY and ~27–28% margin). Product and ecosystem traction (notably Xiaomi/Kingsoft partnership and rapid token growth) underpin an encouraging secular transition to higher-margin AI workloads. However, meaningful near-term headwinds remain: quarter-over-quarter gross margin compression to ~13%, significant increases in cost of revenues and depreciation, supply-chain bottlenecks limiting ability to fully serve demand, heavy CapEx intensity (RMB ~3.0B in Q1; RMB 15–20B guide for 2026), and revenue concentration risks. Taken together, the positive growth and margin expansion driven by AI substantially outweigh the operational and capital intensity challenges, though those challenges warrant monitoring.Positive Updates
Strong Overall Revenue Growth
Total revenue of RMB 2,704 million in Q1 2026, a year-over-year increase of ~37% (management cited RMB 2.7 billion, +37.2% YoY) and marking eight consecutive quarters of YoY revenue growth.
Negative Updates
Gross Profit and Margin Pressure Quarter-over-Quarter
Adjusted gross profit was RMB 351 million (up ~7–8% YoY) but decreased ~25% quarter-over-quarter. Adjusted gross margin fell from ~17% in the prior quarter to ~13% in Q1, impacted by higher server costs, AI expansion and upfront customer investments.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Overall Revenue Growth
Total revenue of RMB 2,704 million in Q1 2026, a year-over-year increase of ~37% (management cited RMB 2.7 billion, +37.2% YoY) and marking eight consecutive quarters of YoY revenue growth.
Read all positive updates
Company Guidance
Management reiterated a commitment to aggressive infrastructure investment to capture accelerating AI-driven demand, guiding 2026 capital expenditures at roughly RMB 15–20 billion (Q1 capex was RMB 2,985 million) while noting supply‑chain capacity is the primary bottleneck for deployment and that a large backlog exists into Q2; they expect AI to remain the majority driver of public cloud (AI cloud gross billings were RMB 1.0 billion, +90.1% YoY and 50.1% of public cloud), aim to continue expanding token/inference capacity (April token revenue was 53x January), and plan to maintain profitability improvements (Q1 adjusted EBITDA RMB 748 million, ~28% margin) even as adjusted gross profit was RMB 351 million (adjusted gross margin 13%, down from 17% last quarter) and adjusted operating loss was RMB 60 million (2% margin); management also flagged upstream price pressure persisting into Q2 and beyond but expects cost pass‑through and margin recovery, will revise connected‑transaction caps with Xiaomi/Kingsoft (revised three‑year cap reached RMB 14.2 billion), and will prioritize service stability, liquidity management and operating efficiency.Kingsoft Cloud Holdings Ltd Financial Statement Overview
Summary
Income Statement
43
Neutral
Balance Sheet
52
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.28B | 9.56B | 7.79B | 7.05B | 8.18B | 9.06B |
| Gross Profit | 1.53B | 1.50B | 1.34B | 850.17M | 429.54M | 351.29M |
| EBITDA | 2.47B | 1.71B | 443.80M | -1.08B | -1.37B | -668.37M |
| Net Income | -966.12M | -936.25M | -1.97B | -2.18B | -2.66B | -1.59B |
Balance Sheet | ||||||
| Total Assets | 28.46B | 26.74B | 17.59B | 15.07B | 17.32B | 21.08B |
| Cash, Cash Equivalents and Short-Term Investments | 4.90B | 6.12B | 2.74B | 2.26B | 4.67B | 6.71B |
| Total Debt | 7.00B | 10.28B | 5.91B | 1.72B | 1.69B | 1.62B |
| Total Liabilities | 19.46B | 17.42B | 12.09B | 7.82B | 7.73B | 9.59B |
| Stockholders Equity | 9.00B | 9.32B | 5.17B | 6.89B | 8.80B | 10.60B |
Cash Flow | ||||||
| Free Cash Flow | 11.03M | -941.34M | -3.05B | -2.13B | -1.25B | -1.44B |
| Operating Cash Flow | 4.75B | 3.80B | 628.42M | -169.07M | 188.97M | -708.87M |
| Investing Cash Flow | -5.67B | -4.53B | -3.62B | -673.19M | -32.87M | -421.62M |
| Financing Cash Flow | 3.64B | 4.18B | 3.26B | -227.85M | -1.15B | 2.21B |
Kingsoft Cloud Holdings Ltd Technical Analysis
Negative
7.43
Price Trends
6.18
Negative
6.90
Negative
6.77
Negative
Market Momentum
-0.21
Negative
42.24
Neutral
37.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3896, the sentiment is Negative. The current price of 7.43 is above the 20-day moving average (MA) of 5.03, above the 50-day MA of 6.18, and above the 200-day MA of 6.77, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 42.24 is Neutral, neither overbought nor oversold. The STOCH value of 37.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3896.
Kingsoft Cloud Holdings Ltd Risk Analysis
Kingsoft Cloud Holdings Ltd disclosed 98 risk factors in its most recent earnings report. Kingsoft Cloud Holdings Ltd reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kingsoft Cloud Holdings Ltd Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | HK$4.13B | 38.00 | 6.30% | 3.47% | -5.00% | -79.97% | |
62 Neutral | HK$1.36B | 14.40 | 8.62% | ― | 14.29% | 142.01% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | HK$23.74B | 143.89 | 1.75% | ― | 12.11% | ― | |
48 Neutral | HK$22.30B | -18.25 | -12.16% | ― | 31.44% | 56.19% | |
48 Neutral | HK$14.96B | -397.18 | -0.42% | ― | 35.98% | 90.09% | |
45 Neutral | HK$54.59B | -23.02 | -7.21% | ― | 33.04% | 62.73% |
* Technology Sector Average
HK:3896
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Kingsoft Cloud Holdings Ltd Corporate Events
Kingsoft Cloud Grants 16.2 Million RSUs Under 2026 Incentive Plan
Jul 17, 2026
Kingsoft Cloud Holdings Ltd has granted 16,220,972 restricted share units to 438 employees under its 2026 Share Incentive Plan, representing about 0.36% of its total issued shares. The RSUs are priced at HK$0.01 per share versus a HK$4.92 market p...
Kingsoft Cloud Shareholders Approve All Resolutions at 2026 AGM
Jun 30, 2026
Kingsoft Cloud Holdings Ltd reported that all resolutions tabled at its annual general meeting on June 30, 2026 were approved by shareholders via poll, including the adoption of its audited consolidated financial statements for the year ended Dece...
Kingsoft Cloud Sets 2026 AGM to Approve Accounts, Board Changes and Share Mandate
May 29, 2026
Kingsoft Cloud Holdings Limited has called its annual general meeting for June 30, 2026 in Beijing, where shareholders will vote on standard corporate matters including the adoption of audited 2025 financial statements and the re-election of two n...
Kingsoft Cloud Sets Global Record Dates for 2026 AGM Participation
May 19, 2026
Kingsoft Cloud Holdings has set June 2, 2026, as the record date for determining which holders of its ordinary shares are eligible to attend and vote at its forthcoming annual general meeting, with separate cut-off times for shares registered in H...
Kingsoft Cloud Sets May 27 Board Meeting and Earnings Call for Q1 2026 Results
May 14, 2026
Kingsoft Cloud Holdings Limited has scheduled a board meeting for May 27, 2026 to review and approve its unaudited financial results for the first quarter ended March 31, 2026, covering the performance of the company, its subsidiaries and consolid...
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.