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Kingsoft Cloud Holdings Ltd (HK:3896)
:3896
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Kingsoft Cloud Holdings Ltd (3896) AI Stock Analysis

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HK:3896

Kingsoft Cloud Holdings Ltd

(3896)

Rating:54Neutral
Price Target:
HK$7.50
▼(-0.13% Downside)
Kingsoft Cloud Holdings Ltd's overall stock score is primarily influenced by its financial performance, which shows significant operational challenges and negative profitability. While the earnings call revealed strong revenue growth driven by AI and cloud segments, ongoing margin pressure and high CapEx are concerns. Technical analysis indicates neutral momentum, and the valuation is unattractive due to negative earnings. The company's ability to address these financial and operational challenges will be crucial for future performance.
Positive Factors
Public Cloud Revenue
Xiaomi and Kingsoft ecosystem contributed significantly to public cloud revenue, showing 36% year-over-year growth due to the rapid growth of Xiaomi’s EV demand and Kingsoft’s AI business.
Revenue Growth
Kingsoft Cloud reported a 16% year-over-year revenue increase, driven by further AI revenue ramp-up and a solid recovery of enterprise cloud business.
Negative Factors
Cash Flow Concerns
Despite strong AI business growth, achieving positive free cash flow is expected to take time.

Kingsoft Cloud Holdings Ltd (3896) vs. iShares MSCI Hong Kong ETF (EWH)

Kingsoft Cloud Holdings Ltd Business Overview & Revenue Model

Company DescriptionKingsoft Cloud Holdings Ltd (3896) is a prominent Chinese cloud computing company that operates within the technology and software sectors. The company provides a comprehensive suite of cloud services, including Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). Kingsoft Cloud's core offerings include cloud servers, storage solutions, and network resources, catering to a wide range of industries such as gaming, video, AI, and healthcare.
How the Company Makes MoneyKingsoft Cloud Holdings Ltd generates revenue primarily through its cloud service offerings. The company charges its clients based on their usage of its cloud infrastructure, which includes computing power, storage, and data transfer. Additionally, Kingsoft Cloud earns income from its platform services by offering tools and solutions that assist businesses in developing and deploying applications more efficiently. Another significant revenue stream comes from its software services, where it provides tailored SaaS solutions to various industries. Strategic partnerships with technology companies and continued investment in expanding its data center capacity also play a crucial role in enhancing its service delivery and driving revenue growth.

Kingsoft Cloud Holdings Ltd Earnings Call Summary

Earnings Call Date:Aug 20, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 19, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth driven by AI and strong performance in both public and enterprise cloud segments. However, the company faces pressure on gross margins, high CapEx, and supply chain uncertainties. While growth prospects remain positive, operational challenges persist.
Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Q2 revenue reached RMB 2.35 billion, representing a year-over-year growth of 24%, with public cloud revenue increasing by 32% to RMB 1.63 billion.
AI-Driven Success
AI gross billings reached RMB 728 million, a year-over-year increase of over 120% and a quarter-over-quarter growth of 39%, accounting for 45% of public cloud revenue.
Xiaomi and Kingsoft Ecosystem
Revenue from Xiaomi and Kingsoft ecosystem reached RMB 629 million, up 70% year-over-year, contributing 27% to total revenue.
Enterprise Cloud Growth
Enterprise cloud revenue reached RMB 724 million, a year-over-year increase of 10%, driven by demand for IT delivery services.
Financial Health
Non-GAAP EBITDA profit was RMB 406 million, increased by 5.7 times compared to the same quarter last year, with a margin of 73%.
Negative Updates
Gross Margin Pressure
Adjusted gross margin was 17% this quarter, affected by higher cost of service, upfront costs for new customers, and price pressure of scale clusters.
High CapEx and Indebtedness
CapEx expenditures reached 10 billion for the year, with 5 billion already spent in the first half, indicating high infrastructure investment.
Supply Chain Uncertainty
Concerns about chip supply due to geopolitical tensions, with potential long-term impacts on domestic chip production capabilities.
Company Guidance
During the Kingsoft Cloud Second Quarter 2025 Earnings Conference Call, the company reported a revenue of RMB 2.35 billion, reflecting a year-over-year increase of 24%. Public cloud revenue rose significantly by 32% to RMB 1.63 billion, while enterprise cloud revenue climbed 10% to RMB 724 million. The AI segment showed robust growth, with AI gross billings reaching RMB 728 million, marking a 120% year-over-year increase and accounting for 45% of public cloud revenue. The company also highlighted strong growth from its Xiaomi and Kingsoft ecosystem, with revenue from this segment surging 70% year-over-year to RMB 629 million, contributing 27% to the total revenue. Kingsoft Cloud emphasized its strategy of embracing AI opportunities and enhancing its technical capabilities, which has driven incremental demand across various sectors including public services, healthcare, and enterprise services.

Kingsoft Cloud Holdings Ltd Financial Statement Overview

Summary
Kingsoft Cloud Holdings Ltd faces significant operational challenges with persistent losses and negative margins. Despite some improvements in cash flow, the balance sheet shows potential risks due to moderate leverage and declining equity.
Income Statement
45
Neutral
Kingsoft Cloud Holdings Ltd has shown a declining trend in revenue from 2021 to TTM 2025. The Gross Profit Margin in TTM 2025 was 17.12%, which suggests moderate cost control. However, the company has consistently reported negative EBIT and Net Income, indicating an inability to achieve profitability. The Net Profit Margin for TTM 2025 is -24.07%, reflecting ongoing operational challenges.
Balance Sheet
50
Neutral
The company's Debt-to-Equity Ratio as of TTM 2025 is approximately 0.93, which is moderately leveraged. The Equity Ratio stands at 25.40%, indicating a balanced use of equity in financing assets. However, declining stockholders' equity from 2022 to TTM 2025 raises concerns about financial stability.
Cash Flow
55
Neutral
The Operating Cash Flow to Net Income Ratio for TTM 2025 is -0.28, showing cash flow challenges. However, Free Cash Flow turned positive in TTM 2025, indicating improvements in cash management. The Free Cash Flow to Net Income Ratio suggests a cautious yet positive shift in cash flow relative to earnings.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.98B7.79B7.05B8.18B9.06B6.58B
Gross Profit1.37B1.34B850.17M429.54M351.29M356.98M
EBITDA-1.16B443.80M-1.08B-1.37B-776.06M-388.83M
Net Income-1.92B-1.97B-2.18B-2.69B-1.59B-962.20M
Balance Sheet
Total Assets19.72B17.59B15.07B17.32B21.08B11.96B
Cash, Cash Equivalents and Short-Term Investments2.38B2.74B2.26B4.67B6.71B6.12B
Total Debt4.65B5.91B1.72B1.17B1.62B612.27M
Total Liabilities14.38B12.09B7.82B7.73B9.59B3.72B
Stockholders Equity5.01B5.17B6.89B8.80B10.60B8.24B
Cash Flow
Free Cash Flow531.37M-3.05B-2.13B-1.25B-1.44B-1.88B
Operating Cash Flow531.37M628.42M-169.07M188.97M-708.87M-290.43M
Investing Cash Flow-2.94B-3.62B-673.19M-32.87M-421.62M-4.31B
Financing Cash Flow2.69B3.26B-227.85M-1.15B2.21B6.12B

Kingsoft Cloud Holdings Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.51
Price Trends
50DMA
7.43
Positive
100DMA
7.09
Positive
200DMA
6.90
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
50.02
Neutral
STOCH
38.51
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 7.51 is below the 20-day moving average (MA) of 7.54, above the 50-day MA of 7.43, and above the 200-day MA of 6.90, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.02 is Neutral, neither overbought nor oversold. The STOCH value of 38.51 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$35.83B9.00-10.42%1.87%8.46%-7.85%
54
Neutral
HK$31.50B-30.89%19.98%-9.04%
€93.56M8.5423.35%
€1.05B19.716.90%
68
Neutral
HK$57.90B20.5224.41%-4.23%108.65%
54
Neutral
HK$11.20B210.236.56%78.59%
49
Neutral
HK$6.59B-1.31%2.81%-17.48%83.76%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3896
Kingsoft Cloud Holdings Ltd
7.51
6.36
553.04%
DE:T2E
Tradelink Electronic Commerce Limited
0.11
0.03
37.50%
DE:51N
AsiaInfo Technologies Limited
1.09
0.55
101.85%
HK:0909
Ming Yuan Cloud Group Holdings Limited
3.56
1.92
117.07%
HK:9899
Cloud Music Inc.
277.60
184.80
199.14%
HK:0863
BC Technology Group Limited
15.16
9.61
173.15%

Kingsoft Cloud Holdings Ltd Corporate Events

Kingsoft Cloud Enters Strategic Agreement with Xiaomi
Jul 29, 2025

Kingsoft Cloud Holdings Ltd has entered into the 2025 Xiaomi Cooperation Framework Agreement with Xiaomi, effective from July 29, 2025. This agreement involves Xiaomi providing IDC related services to Kingsoft Cloud for three years and selling network hardware devices for one year. As Xiaomi holds a significant share in Kingsoft Cloud, the transactions are classified as continuing connected transactions under Hong Kong Listing Rules. These transactions are subject to reporting and annual review requirements but do not require independent shareholders’ approval.

The most recent analyst rating on (HK:3896) stock is a Hold with a HK$1.70 price target. To see the full list of analyst forecasts on Kingsoft Cloud Holdings Ltd stock, see the HK:3896 Stock Forecast page.

Kingsoft Cloud Announces Board Composition
Jun 30, 2025

Kingsoft Cloud Holdings Limited has announced the composition of its board of directors, which includes Lei Jun as Chairman and Zou Tao as Vice Chairman. The board also comprises non-executive and independent non-executive directors, each serving on various committees such as audit, compensation, nomination, and corporate governance. This announcement reflects the company’s governance structure and may influence its strategic decisions and corporate oversight.

The most recent analyst rating on (HK:3896) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Kingsoft Cloud Holdings Ltd stock, see the HK:3896 Stock Forecast page.

Kingsoft Cloud Grants RSUs to Employees Under 2021 Plan
Jun 27, 2025

Kingsoft Cloud Holdings Ltd announced the grant of 4,983,520 restricted share units (RSUs) to 164 employees under its 2021 Share Incentive Plan. This move is part of the company’s strategy to incentivize and retain talent, with RSUs vesting over a period of one to five years. The grant reflects the company’s commitment to aligning employee interests with its long-term growth objectives, potentially impacting its operational dynamics and market positioning.

The most recent analyst rating on (HK:3896) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Kingsoft Cloud Holdings Ltd stock, see the HK:3896 Stock Forecast page.

Kingsoft Cloud Completes Share Subscription to Boost Infrastructure and Technology
Jun 17, 2025

Kingsoft Cloud Holdings Ltd has completed a connected transaction involving the subscription of new shares under a specific mandate. The company issued 69,375,000 new shares to Kingsoft Corporation at a price of HK$5.83 per share, raising approximately HK$404.46 million. The proceeds will be used for infrastructure upgrades, technology development, and general corporate purposes. This transaction slightly increases Kingsoft Corporation’s shareholding in Kingsoft Cloud, enhancing its control over the company.

The most recent analyst rating on (HK:3896) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Kingsoft Cloud Holdings Ltd stock, see the HK:3896 Stock Forecast page.

Kingsoft Cloud Announces CFO Resignation and Future Plans
Jun 11, 2025

Kingsoft Cloud Holdings Ltd announced the resignation of Mr. He Haijian from his roles as executive director and chief financial officer, effective June 30, 2025, due to personal commitments. The company expressed gratitude for Mr. He’s contributions and leadership over the past five years and plans to appoint a new CFO soon. The board remains committed to the company’s strategic priorities and confident in its long-term outlook.

The most recent analyst rating on (HK:3896) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Kingsoft Cloud Holdings Ltd stock, see the HK:3896 Stock Forecast page.

Kingsoft Cloud Approves Key Resolutions at AGM
Jun 9, 2025

Kingsoft Cloud Holdings Ltd announced that all resolutions proposed at their Annual General Meeting held on June 9, 2025, were approved by shareholders. Key resolutions included the re-election of directors, authorization for the board to fix director remuneration, reappointment of Ernst & Young as auditors, and granting mandates for share issuance, resale, and repurchase. These resolutions are expected to strengthen the company’s governance and operational flexibility, potentially impacting its market position positively.

The most recent analyst rating on (HK:3896) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Kingsoft Cloud Holdings Ltd stock, see the HK:3896 Stock Forecast page.

Kingsoft Cloud Announces Board Composition and Roles
Jun 9, 2025

Kingsoft Cloud Holdings Limited announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement provides clarity on the company’s governance structure, potentially impacting its strategic direction and reassuring stakeholders about its leadership stability.

The most recent analyst rating on (HK:3896) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Kingsoft Cloud Holdings Ltd stock, see the HK:3896 Stock Forecast page.

Kingsoft Cloud Announces Director Changes
May 28, 2025

Kingsoft Cloud Holdings Ltd announced the resignation of Mr. Feng Honghua as a non-executive director due to other business commitments, effective after the annual general meeting on June 9, 2025. Mr. Zhang Duo has been appointed as the new non-executive director, bringing extensive experience from his previous roles at Xiaomi Corporation, which may enhance the company’s strategic direction and governance.

The most recent analyst rating on (HK:3896) stock is a Hold with a HK$1.70 price target. To see the full list of analyst forecasts on Kingsoft Cloud Holdings Ltd stock, see the HK:3896 Stock Forecast page.

Kingsoft Cloud Releases Q1 2025 Financial Results
May 28, 2025

Kingsoft Cloud Holdings Limited announced its unaudited financial results for the first quarter of 2025, prepared according to U.S. GAAP. The announcement, made under regulatory obligations, highlights the company’s financial performance and advises caution to shareholders and potential investors regarding the results.

The most recent analyst rating on (HK:3896) stock is a Hold with a HK$1.70 price target. To see the full list of analyst forecasts on Kingsoft Cloud Holdings Ltd stock, see the HK:3896 Stock Forecast page.

Kingsoft Cloud to Announce Q1 2025 Results and Host Earnings Call
May 13, 2025

Kingsoft Cloud Holdings Ltd announced a board meeting scheduled for May 28, 2025, to review and approve the company’s unaudited first-quarter results for 2025. The company will also host an earnings conference call on the same day, providing stakeholders an opportunity to gain insights into its financial performance and strategic direction.

The most recent analyst rating on (HK:3896) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Kingsoft Cloud Holdings Ltd stock, see the HK:3896 Stock Forecast page.

Kingsoft Cloud Announces 2025 AGM and Key Resolutions
May 9, 2025

Kingsoft Cloud Holdings Limited has announced its Annual General Meeting scheduled for June 9, 2025, in Beijing. The meeting will address several resolutions, including the adoption of the 2024 financial statements, re-election of directors, and re-appointment of Ernst & Young as auditors. Additionally, a mandate will be discussed to allow directors to issue and deal with company shares and securities, which could impact the company’s financial strategy and shareholder value.

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.Date of analysis: Sep 06, 2025