Kingsoft (3888) AI Stock Analysis

• Market Cap: HK$49.23B
• Dividend Yield: 0.38%
• Average Volume (3M): 14.43M
• Price to Earnings (P/E): 25.9
• Beta (1Y): 1.23
• Revenue Growth: 15.08%
• EPS Growth: 84.20%
• Country: HK
• Employees: 8,047
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.42
• Shares Outstanding: 1,400,425,800
• 10 Day Avg. Volume: 14,810,071
• 30 Day Avg. Volume: 14,430,900
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$37.76
• Price Target Upside: 7.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: HK$38.00 ▲(7.77% Upside)

Kingsoft's strong financial performance and growth in the office software segment are key strengths. However, technical indicators show a bearish trend, and challenges in the gaming sector pose risks. The stock's valuation is moderate, with limited 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: Positive
• Last Price: 35.26
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3888, the sentiment is Positive. The current price of 35.26 is above the 20-day moving average (MA) of 34.28, above the 50-day MA of 34.39, and below the 200-day MA of 36.68, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 55.69 is Neutral, neither overbought nor oversold. The STOCH value of 82.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3888.

Kingsoft Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2660	74 Outperform	2.53B	7.62	16.81%	14.29%	-27.66%	-51.96%
3888	71 Outperform	HK$49.23B	25.88	7.25%	0.38%	15.08%	84.20%
9626	71 Outperform	86.35B	374.56	-9.55%	―	22.43%	0.00%
2400	67 Neutral	38.29B	28.46	32.28%	0.46%	51.87%	4031.49%
0799	67 Neutral	5.26B	9.17	18.61%	3.15%	4.02%	-23.98%
0302	49 Neutral	1.41B	-0.50	-53.94%	―	-36.80%	-666.80%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Kingsoft Corporate Events

Kingsoft Office Reports Strong Financial Growth in H1 2025

Kingsoft Corporation Limited announced key financial results for its subsidiary, Beijing Kingsoft Office Software, Inc., for the first half of 2025. The company reported a 10.12% increase in revenue compared to the same period last year, reaching RMB 2,657,122,000. Net profit attributable to shareholders rose by 3.57%, and net cash flow from operating activities increased by 17.51%. These results indicate a positive financial performance and suggest a stable growth trajectory for Kingsoft Office, enhancing its market position and potentially benefiting its stakeholders.

The most recent analyst rating on (HK:3888) stock is a Hold with a HK$37.00 price target. To see the full list of analyst forecasts on Kingsoft stock, see the HK:3888 Stock Forecast page.

Kingsoft Reports Modest Profit Growth Amid Software Gains

Kingsoft Corporation Limited announced its unaudited financial results for the three and six months ending June 30, 2025. The company reported a slight increase in revenue for the six-month period, driven by its office software and services segment, despite a decline in its online games revenue. The overall profit for the period showed a modest increase, with significant contributions from finance income and other gains, although operating profit decreased due to higher research and development costs and selling expenses. The results reflect Kingsoft’s strategic focus on enhancing its software offerings while navigating challenges in the gaming sector.

The most recent analyst rating on (HK:3888) stock is a Hold with a HK$37.00 price target. To see the full list of analyst forecasts on Kingsoft stock, see the HK:3888 Stock Forecast page.

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.