Kingsoft (KSFTF) AI Stock Analysis

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Kingsoft (KSFTF) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$5.96B

Dividend Yield0.42%

Average Volume (3M)0.00

Price to Earnings (P/E)26.3

Beta (1Y)0.63

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees8,047

SectorCommunication Services

Sector Strength88

IndustryElectronic Gaming & Multimedia

Share Statistics

EPS (TTM)0.03

Shares Outstanding1,400,425,800

10 Day Avg. Volume0

30 Day Avg. Volume0

Financial Highlights & Ratios

PEG Ratio2.02

Price to Book (P/B)2.37

Price to Sales (P/S)0.00

P/FCF Ratio12.28

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$5.92

Price Target Upside38.97% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering5

Kingsoft Business Overview & Revenue Model

Company DescriptionKingsoft 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 Earnings Call Summary

Earnings Call Date:May 28, 2025

(Q1-2025)

% Change Since: -13.24%|

Next Earnings Date:Aug 26, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed overview with strong year-on-year growth in revenue, particularly in the WPS 365 business and gaming segment. However, there were notable quarter-on-quarter declines in revenue and profit margins, coupled with increased expenses and net losses. The company's strong cash position and strategic focus on AI and global expansion are positive factors.

Q1-2025 Updates

Positive Updates

Solid Start to 2025 with Revenue Growth

Group revenue reached RMB 2.34 billion, up 9% year-over-year. Kingsoft Office Group achieved a 6% year-on-year increase in total revenue, and the WPS individual business generated revenue of RMB 857 million, up 11% year-on-year.

WPS 365 Business Growth

WPS 365 generated revenue of RMB 151 million in the first quarter, a 63% year-on-year increase, driven by the platform's adoption among private and local state-owned enterprises.

Gaming Segment Performance

The gaming segment's total revenue reached RMB 1.037 billion, a 14% year-on-year increase, with successful titles such as JX3 Online and the anticipated release of Mecha BREAK.

Strong Cash Position

The group had cash resources of RMB 26 billion as of March 31, 2025.

Negative Updates

Quarter-on-Quarter Revenue Decline

Revenue decreased 16% quarter-on-quarter to RMB 2,338 million, driven by a 13% decrease in office software and services and a 20% decrease in online games revenue.

Decreased Profit Margins

Gross profit decreased 18% quarter-on-quarter to RMB 1,919 million, with gross profit margin dropping by 2 percentage points quarter-on-quarter to 82%.

Increased R&D and Selling Expenses

Research and development costs increased 16% year-on-year and 13% quarter-on-quarter to RMB 828 million, and selling and distribution expenses increased 30% year-on-year.

Net Other Losses

Net other losses were RMB 22 million for this quarter compared with losses of RMB 4 million and RMB 74 million for the first and the fourth quarter of 2024, respectively.

Company Guidance

During Kingsoft Corporation's Q1 2025 earnings call, the company reported a revenue of RMB 2.34 billion, reflecting a 9% year-over-year increase. The Kingsoft Office Group achieved a revenue of RMB 1.301 billion, marking a 6% rise from the previous year, with global monthly active devices for WPS Office reaching 647 million, an 8% increase year-on-year. The WPS individual business contributed RMB 857 million, up 11% year-on-year. The WPS 365 business saw a remarkable 63% year-on-year revenue growth to RMB 151 million. For the gaming segment, revenue grew by 14% year-on-year to RMB 1.037 billion, driven by the success of titles like JX3 Online. The company maintained a robust cash position with RMB 26 billion and highlighted its strategic focus on AI integration and global expansion, especially in office productivity and gaming.

Kingsoft Financial Statement Overview

Summary

Kingsoft's financial performance is robust, demonstrated by strong revenue growth, high profit margins, and solid cash flow generation. The balance sheet reflects financial stability with a strong equity ratio and low leverage. However, a slight uptick in debt requires monitoring.

Income Statement

Very Positive

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

Positive

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

Very Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
3.65B	1.90B	873.55M	472.00M	1.86B
	EBITDA
3.83B	1.90B	1.15B	1.50B	2.67B
	Net Income Common Stockholders
1.55B	483.46M	-5.34B	952.84M	1.80B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
26.58B	23.86B	21.33B	19.09B	17.96B
	Total Assets
38.28B	35.19B	31.89B	36.54B	35.04B
	Total Debt
3.02B	2.84B	2.80B	2.45B	2.42B
	Net Debt
-20.79B	-17.43B	-15.41B	-13.74B	-11.63B
	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 Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KSFTF		$5.96B	26.30	7.07%	0.42%	―	―
Sector *	61 Neutral	$14.60B	5.95	-4.32%	3.69%	2.76%	-30.49%
IGGGF		$523.24M	7.00	19.85%	4.20%	―	―
9626	67 Neutral	HK$60.63B	―	-4.30%	―	20.62%	87.94%
2660	67 Neutral	HK$2.35B	4.93	17.68%	10.09%	-21.05%	-41.78%
2400	63 Neutral	HK$19.50B	21.74	38.63%	―	44.92%	―
0302	41 Neutral	HK$1.38B	―	-43.81%	―	-27.68%	-11792.65%

* Communication Services Sector Average

Performance Comparison

KSFTF

Kingsoft

4.26

0.94

28.31%

IGGGF

IGG

0.45

0.08

21.62%

HK:9626

Bilibili, Inc. Class Z

146.60

35.30

31.72%

HK:2400

XD, Inc.

40.35

22.17

121.95%

HK:2660

Zengame Technology Holding Ltd.

2.28

-0.70

-23.49%

HK:0302

CMGE Technology Group Limited

0.46

-0.67

-59.29%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.