Kingsoft Cloud Holdings Ltd (HK:3896)
:3896
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Kingsoft Cloud Holdings Ltd
(3896)
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Rating:54Neutral
Price Target:
HK$7.00
▼(-5.79% Downside)
Action:UpgradedDate:01/28/26
Overall score reflects improving cash flow and modest revenue growth but persistent losses and high leverage (largest negative factor). Technicals are supportive with strong upward momentum, though elevated RSI suggests near-term extension. Valuation provides limited support given negative earnings and no dividend yield data.
Positive Factors
Free cash flow improvement
An 80.87% rise in free cash flow over the TTM indicates improving cash generation capacity. Sustained FCF growth enhances the firm’s ability to fund capex, product development and customer acquisition without relying solely on external financing, supporting longer-term scaling despite current losses.
Negative Factors
Persistent unprofitability
Material negative net and EBIT margins indicate the business still fails to convert scale into profitability. Persistent losses limit internal funding for growth, increase dependence on external capital, and raise the bar for management to demonstrate sustainable margin recovery over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow improvement
An 80.87% rise in free cash flow over the TTM indicates improving cash generation capacity. Sustained FCF growth enhances the firm’s ability to fund capex, product development and customer acquisition without relying solely on external financing, supporting longer-term scaling despite current losses.
Read all positive factors
Kingsoft Cloud Holdings Ltd (3896) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$32.27B
Dividend YieldN/A
Average Volume (3M)111.61M
Price to Earnings (P/E)―
Beta (1Y)2.20
Revenue Growth23.96%
EPS Growth55.68%
CountryHK
Employees12,335
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.04
Shares Outstanding4,531,784,700
10 Day Avg. Volume82,679,101
30 Day Avg. Volume111,609,710
Financial Highlights & Ratios
PEG Ratio0.60
Price to Book (P/B)2.63
Price to Sales (P/S)1.74
P/FCF Ratio-4.45
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$10.26Price Target Upside38.03% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)-0.2
Revenue Forecast (FY)HK$13.74B
Kingsoft Cloud Holdings Ltd Business Overview & Revenue Model
Company Description
Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations in China. The company's products portfolio includes cloud products, including infrastructure as a service (IaaS) infrastructure, platform as a service (PaaS) m...
How the Company Makes Money
Kingsoft Cloud generates revenue primarily through its cloud computing services, which include infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS) offerings. Key revenue streams include subscription f...
Kingsoft Cloud Holdings Ltd Earnings Call Summary
Earnings Call Date:Mar 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 10, 2026
Earnings Call Sentiment Positive
Overall the call was positive: the company reported record quarterly and annual revenues, very strong AI billing growth (95% YoY), improving profitability with two consecutive profitable quarters at the operating level and a strong cash position. However, material challenges remain, including rising infrastructure and depreciation costs, full-year adjusted operating loss (though narrowed), high revenue concentration within the Xiaomi/Kingsoft ecosystem (94% related-party exposure), and a large planned capital expenditure program that depends on prepayments and financing. These risks temper the outlook but do not outweigh the strong growth and improving margins reported in the quarter.Positive Updates
Record Quarterly and Annual Revenue
Q4 revenue reached RMB 2,761 million, up 24% year-over-year; full-year 2025 revenue was RMB 9,559 million, up 23% year-over-year.
Negative Updates
Rising Cost Base and Depreciation
Total cost of revenues in Q4 was RMB 2,296 million, up 27% YoY. Depreciation and amortization rose to RMB 741 million in the quarter from RMB 323 million a year earlier due to newly acquired and leased servers and network equipment.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarterly and Annual Revenue
Q4 revenue reached RMB 2,761 million, up 24% year-over-year; full-year 2025 revenue was RMB 9,559 million, up 23% year-over-year.
Read all positive updates
Company Guidance
Guidance: for 2026 Kingsoft Cloud expects total capital expenditure and control assets to exceed RMB 10 billion, with roughly half (~50%) of that CapEx targeted to be covered by customer prepayment arrangements; Q4 CapEx was RMB 496 million and cash & cash equivalents were RMB 6,018 million. Management said 2026 CapEx will be funded through four channels (proceeds from 2025 financing, customer operating receipts, strategic customer prepayments and committed credit facilities), will rely more on short‑ and long‑term leases to reduce upfront capital needs, and currently has no equity financing plans. They reiterated plans to further invest in infrastructure, enhance service stability, manage liquidity risk and improve operating efficiency, and guided that revenue growth should accelerate and the EBITDA rate should improve in 2026.Kingsoft Cloud Holdings Ltd Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
50
Neutral
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.02B | 7.79B | 7.05B | 8.18B | 9.06B | 6.58B |
| Gross Profit | 1.46B | 1.34B | 850.17M | 429.54M | 351.29M | 356.98M |
| EBITDA | 1.59B | 443.80M | -1.08B | -1.37B | -668.37M | -449.21M |
| Net Income | -972.95M | -1.97B | -2.18B | -2.66B | -1.59B | -962.20M |
Balance Sheet | ||||||
| Total Assets | 25.65B | 17.59B | 15.07B | 17.32B | 21.08B | 11.96B |
| Cash, Cash Equivalents and Short-Term Investments | 3.95B | 2.74B | 2.26B | 4.67B | 6.71B | 6.12B |
| Total Debt | 8.75B | 5.91B | 1.72B | 1.69B | 1.62B | 612.27M |
| Total Liabilities | 18.58B | 12.09B | 7.82B | 7.73B | 9.59B | 3.72B |
| Stockholders Equity | 6.74B | 5.17B | 6.89B | 8.80B | 10.60B | 8.24B |
Cash Flow | ||||||
| Free Cash Flow | 3.33B | -3.05B | -2.13B | -1.25B | -1.44B | -1.88B |
| Operating Cash Flow | 3.33B | 628.42M | -169.07M | 188.97M | -708.87M | -290.43M |
| Investing Cash Flow | -5.44B | -3.62B | -673.19M | -32.87M | -421.62M | -4.31B |
| Financing Cash Flow | 4.47B | 3.26B | -227.85M | -1.15B | 2.21B | 6.12B |
Kingsoft Cloud Holdings Ltd Technical Analysis
Positive
7.43
Price Trends
7.03
Positive
6.55
Positive
6.97
Positive
Market Momentum
0.09
Positive
49.60
Neutral
26.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3896, the sentiment is Positive. The current price of 7.43 is above the 20-day moving average (MA) of 7.23, above the 50-day MA of 7.03, and above the 200-day MA of 6.97, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 49.60 is Neutral, neither overbought nor oversold. The STOCH value of 26.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | HK$913.83M | 9.84 | 23.35% | 9.81% | -6.93% | -18.99% | |
67 Neutral | HK$28.08B | 13.17 | 23.66% | ― | -4.23% | 108.65% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | HK$12.00B | -58.99 | 4.01% | ― | 115.40% | ― | |
54 Neutral | HK$32.27B | -22.29 | -13.37% | ― | 23.96% | 55.68% | |
52 Neutral | HK$5.46B | 55.03 | 6.30% | 3.47% | -17.90% | 56.67% | |
43 Neutral | HK$3.98B | 180.54 | -0.51% | 3.10% | -17.48% | 83.80% |
* Technology Sector Average
HK:3896
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Kingsoft Cloud Holdings Ltd Corporate Events
Kingsoft Cloud Grants RSUs Equal to 0.10% of Share Capital to 104 Employees
Dec 18, 2025
Kingsoft Cloud Holdings Limited has granted 4,402,557 restricted share units (RSUs), equivalent to about 0.10% of its issued share capital or roughly 293,503 ADSs, to 104 employees under its 2021 Share Incentive Plan. The awards, priced at US$0.01...
Kingsoft Cloud Updates Nomination Committee Charter to Strengthen Board Governance
Nov 19, 2025
Kingsoft Cloud Holdings Ltd has amended its Nomination Committee Charter, emphasizing the importance of evaluating and recommending board candidates to align with the company’s corporate strategy. The committee will focus on maintaining a di...
Kingsoft Cloud Releases Q3 2025 Financial Results
Nov 19, 2025
Kingsoft Cloud Holdings Limited announced its unaudited financial results for the third quarter ending September 30, 2025. The results, prepared in accordance with U.S. GAAP, highlight the company’s financial performance and are intended to ...
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.