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Kingsoft
(3888)
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Rating:75Outperform
Price Target:
HK$29.00
▲(18.85% Upside)
Action:Reiterated
Date:09/06/26
The score is driven primarily by strong financial fundamentals—especially very low leverage and strong margins—tempered by earnings and cash-flow consistency concerns. Valuation is supportive with a low P/E, while technical indicators are neutral-to-mixed due to a negative MACD and trading below the 200-day average.
Positive Factors
Strong Profitability
Very high gross and net margins indicate substantial value capture across Kingsoft’s software and services activities. If maintained, this profitability can fund product investment, support resilience during softer demand, and provide operating leverage as recurring offerings expand.
Negative Factors
Inconsistent Revenue Trend
The reported negative revenue-growth figure, together with the noted prior decline, shows that top-line momentum has not been consistently sustained. Even with a TTM rebound, uneven growth can complicate planning, reduce operating leverage, and make future earnings less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability
Very high gross and net margins indicate substantial value capture across Kingsoft’s software and services activities. If maintained, this profitability can fund product investment, support resilience during softer demand, and provide operating leverage as recurring offerings expand.
Read all positive factors
Kingsoft (3888) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$33.41B
Dividend Yield0.53%
Average Volume (3M)11.64M
Price to Earnings (P/E)10.1
Beta (1Y)1.29
Revenue Growth-0.44%
EPS Growth68.30%
CountryHK
Employees9,067
SectorCommunication Services
Sector Strength97
IndustrySoftware - Application
Share Statistics
EPS (TTM)2.06
Shares Outstanding1,374,440,300
10 Day Avg. Volume9,629,828
30 Day Avg. Volume11,635,350
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)1.35
Price to Sales (P/S)3.64
P/FCF Ratio15.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$31.38Price Target Upside28.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.41
Revenue Forecast (FY)HK$10.16B
Kingsoft Business Overview & Revenue Model
Company Description
Kingsoft Corporation Limited engages in the entertainment and office software and services businesses in Mainland China, Hong Kong, and internationally. It operates through two segments: Office Software and Services, and Entertainment Software and...
How the Company Makes Money
Kingsoft makes money through multiple revenue streams across software, games, and cloud-related interests:
1) Office software (WPS and related services)
- Subscriptions and memberships: A core monetization method is charging individual users for ...
Kingsoft Earnings Call Summary
Earnings Call Date:Mar 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 24, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: strong execution and clear momentum in the Office/WPS segment (notably AI adoption, paid users growth, WPS 365 ad growth and international traction), successful new game launches with large early user traction, and a very strong cash balance. Offsetting these positives were a decline in overall group revenue (-6% YoY), a significant contraction in online games revenue (-28% YoY), rising operating costs (R&D, marketing, admin and share-based comp), weaker operating profit before one-offs, and a drop in net cash from operations. There are also volatile one-offs (large deemed disposal gain) and some inconsistencies in reported growth percentages that cloud the narrative. Overall, the positive momentum in Office/AI and liquidity are meaningful strengths, but material headwinds in gaming and cost/margin pressure balance those gains.Positive Updates
WPS / Office Software Revenue Growth
Office software & services revenue reported at RMB 5.93 billion for 2025. Management highlighted strong growth in the Office segment (Tao: +16% YoY; Finance section also reported the same RMB 5,929 million figure with a stated +60% YoY). WPS software business annual revenue was RMB 1.46 billion, up 15% YoY.
Negative Updates
Group Revenue Decline (Full Year)
Group total revenue for 2025 decreased 6% YoY to RMB 9.68 billion, indicating top-line pressure at the consolidated level despite strength in office products.
Read all updates
Q4-2025 Updates
Positive
Negative
WPS / Office Software Revenue Growth
Office software & services revenue reported at RMB 5.93 billion for 2025. Management highlighted strong growth in the Office segment (Tao: +16% YoY; Finance section also reported the same RMB 5,929 million figure with a stated +60% YoY). WPS software business annual revenue was RMB 1.46 billion, up 15% YoY.
Read all positive updates
Company Guidance
Management guided that Kingsoft will deepen AI‑agent technology across full‑scenario office, strengthen WPS 365 as an intelligent collaboration platform and accelerate internationalization while the games division will prioritize premium content, global publishing, sustaining classic IPs and new genres; they highlighted key metrics including FY2025 group revenue RMB 9,683 million (‑6% YoY), office software & services RMB 5,929 million (management cited growth of both +16% and +60% YoY in different remarks), online games & others RMB 3,754 million (‑28% YoY), Q4 revenue RMB 2,618 million (‑6% YoY, +8% QoQ) split 67% office / 33% games, Q4 office revenue RMB 1,750 million (+30% YoY, +50% QoQ), WPS individual annual revenue RMB 3,630 million (+10% YoY; Q4 RMB 918 million, +14% YoY), WPS AI MAU >18 million (+307% YoY), overseas PC monthly active devices 42.5 million (+54% YoY), WPS 365 ad revenue RMB 720 million (+65% YoY; Q4 RMB 210 million, ≈+16% YoY), WPS software annual RMB 1,460 million (+15% YoY; Q4 RMB 530 million, +15% YoY), Goose Goose Duck (launched Jan 7, 2026) >5 million new users on launch day and >30 million cumulative new users (ranked #1 iOS free most of the past two months, ~3 million concurrent cited), Starsand Island early access Feb 2026 with official launch targeted H2 2026, two Angry Birds titles planned for China in 2026, FY gross margin 81% (‑2 ppt YoY; Q4 82%, ‑2 ppt YoY, +2 ppt QoQ), operating profit before SBC FY RMB 2,072 million (‑47% YoY; Q4 RMB 606 million, ‑48% YoY, +70% QoQ), profit attributable to owners FY RMB 2,004 million (Q4 RMB 975 million), profit excl. SBC Q4 RMB 1,026 million (net profit margin excl. SBC 39% in Q4), cash resources RMB 27,000 million at Dec 31, 2025, operating cash flow RMB 2,292 million and capex RMB 342 million—with management emphasizing phased product/version rollouts, stability before commercialization (for Goose Goose Duck) and stepped monetization and ecosystem expansion across products.Kingsoft Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.93B | 9.68B | 10.32B | 8.53B | 7.64B | 6.37B |
| Gross Profit | 7.97B | 7.86B | 8.58B | 7.03B | 6.18B | 5.21B |
| EBITDA | 1.67B | 1.70B | 3.83B | 1.90B | 1.65B | 1.50B |
| Net Income | 2.82B | 2.00B | 1.55B | 483.46M | -6.05B | 395.33M |
Balance Sheet | ||||||
| Total Assets | 42.38B | 39.55B | 38.28B | 35.19B | 31.89B | 36.54B |
| Cash, Cash Equivalents and Short-Term Investments | 26.94B | 27.08B | 26.58B | 23.86B | 21.33B | 19.09B |
| Total Debt | 268.32M | 35.25M | 3.02B | 2.84B | 2.80B | 2.45B |
| Total Liabilities | 7.32B | 6.89B | 9.87B | 8.62B | 7.73B | 7.74B |
| Stockholders Equity | 27.08B | 26.05B | 22.46B | 21.29B | 19.50B | 24.78B |
Cash Flow | ||||||
| Free Cash Flow | 2.10B | 2.26B | 4.16B | 3.01B | 2.06B | 1.92B |
| Operating Cash Flow | 2.34B | 2.57B | 4.59B | 3.49B | 2.57B | 2.22B |
| Investing Cash Flow | -1.83B | -1.18B | -8.52B | -6.48B | 4.42B | -1.61B |
| Financing Cash Flow | -1.11B | -1.89B | -1.08B | 655.86M | -619.04M | -479.61M |
Kingsoft Technical Analysis
Negative
24.40
Price Trends
25.20
Negative
24.04
Positive
25.61
Negative
Market Momentum
-0.29
Positive
45.22
Neutral
20.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3888, the sentiment is Negative. The current price of 24.4 is below the 20-day moving average (MA) of 24.73, below the 50-day MA of 25.20, and below the 200-day MA of 25.61, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 45.22 is Neutral, neither overbought nor oversold. The STOCH value of 20.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3888.
Kingsoft Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | HK$3.49B | 5.96 | 17.09% | 4.90% | -1.22% | 1.26% | |
76 Outperform | HK$579.92B | 15.33 | 20.04% | 2.46% | 10.15% | -1.91% | |
75 Outperform | HK$33.41B | 10.10 | 10.71% | 0.53% | -0.44% | 68.30% | |
71 Outperform | HK$18.87B | 11.15 | 37.85% | 1.02% | 5.88% | 13.11% | |
68 Neutral | HK$51.04B | 28.51 | 9.84% | ― | 10.65% | 621.86% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
52 Neutral | HK$3.92B | 21.21 | 2.92% | 13.52% | -15.56% | ― |
* Communication Services Sector Average
HK:3888
Kingsoft
24.38
-10.33
-29.75%
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Kingsoft Corporate Events
Kingsoft Restructures Corporate Secretarial Roles and Secures Listing Rules Waiver
Aug 25, 2026
Kingsoft Corporation Limited has announced changes to its corporate secretarial and governance structure, including the resignation of company secretary and board secretary Ms. Ou Lu, effective 25 August 2026. The board expressed gratitude for her...
Kingsoft Office Delivers Surging Profits and Revenue in First Half of 2026
Aug 19, 2026
Beijing Kingsoft Office Software reported strong interim results for the six months to 30 June 2026, with revenue rising 24.69% year-on-year to RMB 3.31 billion and total profit surging 254.50% to RMB 2.76 billion. Net profit attributable to share...
Kingsoft Boosts Office Software Growth as Gaming Revenue Slides in H1 2026
Aug 19, 2026
Kingsoft reported a 6% year-on-year rise in first-half 2026 revenue to RMB4.93 billion, driven by a 25% surge in office software and services, while online games revenue fell 19%. Despite a 17% drop in operating profit, profit attributable to owne...
Kingsoft Sets August Board Meeting to Approve Interim Results
Aug 6, 2026
Kingsoft Corporation Limited has scheduled a board meeting for 19 August 2026 to review and approve the interim results for the three- and six-month periods ended 30 June 2026. The meeting will cover the company and its subsidiaries, signaling the...
Kingsoft Office forecasts sharp profit surge on double-digit revenue growth in H1 2026
Jul 28, 2026
Beijing Kingsoft Office Software, a key subsidiary of Kingsoft Corporation, expects robust growth for the first half of 2026, according to a voluntary results estimate filed in Hong Kong and Shanghai. The company forecasts revenue of RMB3.21 billi...
Kingsoft Grants Performance-Linked Share Options to Key Employee
Jun 12, 2026
Kingsoft Corporation has granted share options under its 2024 Share Scheme to an eligible employee, reflecting its ongoing use of equity-based incentives to align staff interests with shareholder value. The options cover 250,000 ordinary shares wi...
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.