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Kingsoft Cloud Holdings Ltd
(3896)
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Rating:56Neutral
Price Target:
HK$6.00
▲(9.89% Upside)
Action:Reiterated
Date:09/06/26
The score is primarily driven by improving financial trajectory and strong cash flow (positive operating and free cash flow, narrowing losses, and reduced leverage). This is tempered by weak technical positioning (below key longer-term moving averages with negative MACD) and limited valuation support due to negative earnings. The latest earnings call adds incremental upside due to strong AI-driven growth and improving margins, but high capital intensity and execution/supply risks remain meaningful.
Positive Factors
AI cloud adoption
Rapid AI cloud adoption is changing the company’s revenue mix toward a higher-growth segment. Rising AI billings and penetration can support stronger demand, deepen enterprise relationships, and create a durable platform for future cloud product expansion.
Negative Factors
Persistent net losses
Despite meaningful improvement, the company has not yet established sustained net profitability. Continued losses limit internally generated capital, leave returns on equity negative, and make future performance more dependent on maintaining growth and executing further efficiency gains.
Read all positive and negative factors
Positive Factors
Negative Factors
AI cloud adoption
Rapid AI cloud adoption is changing the company’s revenue mix toward a higher-growth segment. Rising AI billings and penetration can support stronger demand, deepen enterprise relationships, and create a durable platform for future cloud product expansion.
Read all positive factors
Kingsoft Cloud Holdings Ltd (3896) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$24.56B
Dividend YieldN/A
Average Volume (3M)94.94M
Price to Earnings (P/E)―
Beta (1Y)2.41
Revenue Growth35.32%
EPS Growth74.56%
CountryHK
Employees14,394
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.63
Shares Outstanding4,531,784,700
10 Day Avg. Volume47,805,386
30 Day Avg. Volume94,936,349
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.15
Price to Sales (P/S)0.14
P/FCF Ratio-1.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$9.59Price Target Upside75.68% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)-0.13
Revenue Forecast (FY)HK$15.02B
Kingsoft Cloud Holdings Ltd Business Overview & Revenue Model
Company Description
Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations primarily in China. The company's product portfolio includes cloud products, such as infrastructure as a service (IaaS) infrastructure, platform as a service (...
How the Company Makes Money
Kingsoft Cloud primarily makes money by providing cloud services to customers on a usage- and subscription-based basis. Its core revenue comes from (1) public cloud services, where customers consume standardized cloud resources (e.g., compute, sto...
Kingsoft Cloud Holdings Ltd Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 25, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational quarter driven by AI momentum: record revenue, very strong AI cloud billings (+82% YoY), public cloud growth (+45% YoY), rapid MaaS adoption, platform enhancements and a return to adjusted operating profitability. These gains are balanced against elevated infrastructure and depreciation costs, heavy ongoing CapEx to scale AI compute, short-term enterprise cloud deceleration and procurement/supply risks for chips. Overall, management is investing aggressively to capture AI market share while showing disciplined opex control and improved margins, leaving the company in a positive growth and improving-profitability trajectory but with near-term capital intensity and some execution risks.Positive Updates
Record Quarterly Revenue
Total revenue reached a company record of RMB 3,072 million (RMB 3.07 billion), up 31% year-over-year and up 40% quarter-over-quarter.
Negative Updates
Rising Cost of Revenues and Infrastructure Expenses
Total cost of revenues increased 30% year-over-year to RMB 2,606 million, driven by investments in AI infrastructure.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue
Total revenue reached a company record of RMB 3,072 million (RMB 3.07 billion), up 31% year-over-year and up 40% quarter-over-quarter.
Read all positive updates
Company Guidance
Management's guidance reiterated a continued heavy investment in AI infrastructure with a full-year CapEx base case maintained at RMB 15.0 billion; in Q2 CapEx (including right-of-use assets) was RMB 3.3 billion (vs RMB 2.9bn in Q1 and RMB 2.8bn a year ago) and H1 capitalized assets for lease arrangements reached RMB 6.2 billion (noted as >75% of last year's full-year CapEx), while cash and cash equivalents stood at RMB 4,674 million as of June 30; the company also raised combined connected-transaction caps with Xiaomi to RMB 10.0 billion for 2026–2027 (up 39%). Management said it will keep expanding AI compute capacity and product offerings, manage credit and liquidity risk, and drive operating efficiency to bolster profitability—building on Q2 results of total revenue RMB 3,072 million (+31% YoY), public cloud revenue RMB 2,358 million (+45% YoY), AI cloud gross billings RMB 1.33 billion (+82% YoY; ~43% of revenue vs 31% a year ago), adjusted gross margin 15.4% (+2.4pp QoQ), adjusted operating margin 4.0%, adjusted EBITDA margin 36%, and non-GAAP EBITDA of RMB 1,100 million (+171% YoY).Kingsoft Cloud Holdings Ltd Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
55
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.99B | 9.56B | 7.79B | 7.05B | 8.18B | 9.06B |
| Gross Profit | 1.65B | 1.50B | 1.34B | 850.17M | 429.54M | 351.29M |
| EBITDA | 3.23B | 1.71B | 443.80M | -1.08B | -1.37B | -668.37M |
| Net Income | -601.34M | -936.25M | -1.97B | -2.18B | -2.66B | -1.59B |
Balance Sheet | ||||||
| Total Assets | 30.70B | 26.74B | 17.59B | 15.07B | 17.32B | 21.08B |
| Cash, Cash Equivalents and Short-Term Investments | 4.73B | 6.12B | 2.74B | 2.26B | 4.67B | 6.71B |
| Total Debt | 6.86B | 10.28B | 5.91B | 1.72B | 1.69B | 1.62B |
| Total Liabilities | 21.80B | 17.42B | 12.09B | 7.82B | 7.73B | 9.59B |
| Stockholders Equity | 8.90B | 9.32B | 5.17B | 6.89B | 8.80B | 10.60B |
Cash Flow | ||||||
| Free Cash Flow | 1.40B | -941.34M | -3.05B | -2.13B | -1.25B | -1.44B |
| Operating Cash Flow | 6.14B | 3.80B | 628.42M | -169.07M | 188.97M | -708.87M |
| Investing Cash Flow | -7.69B | -4.53B | -3.62B | -673.19M | -32.87M | -421.62M |
| Financing Cash Flow | 978.39M | 4.18B | 3.26B | -227.85M | -1.15B | 2.21B |
Kingsoft Cloud Holdings Ltd Technical Analysis
Negative
5.46
Price Trends
5.59
Negative
6.29
Negative
6.50
Negative
Market Momentum
-0.10
Positive
42.39
Neutral
22.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3896, the sentiment is Negative. The current price of 5.46 is below the 20-day moving average (MA) of 5.67, below the 50-day MA of 5.59, and below the 200-day MA of 6.50, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 42.39 is Neutral, neither overbought nor oversold. The STOCH value of 22.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | HK$1.47B | 14.05 | 9.51% | 10.01% | 21.19% | 19.81% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | HK$28.59B | 96.82 | 3.02% | 0.10% | 16.98% | ― | |
56 Neutral | HK$24.56B | -7.27 | -7.08% | ― | 35.32% | 74.56% | |
54 Neutral | HK$3.83B | -16.87 | -2.55% | 1.37% | -2.82% | -152.77% | |
48 Neutral | HK$16.50B | 81.31 | 1.93% | ― | 41.91% | ― | |
47 Neutral | HK$57.77B | 160.24 | 1.09% | ― | 31.42% | ― |
* Technology Sector Average
HK:3896
Kingsoft Cloud Holdings Ltd
5.33
-3.27
-38.08%
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Kingsoft Cloud Holdings Ltd Corporate Events
Kingsoft Cloud Publishes Q2 2026 Unaudited Results and Cautions Investors
Aug 19, 2026
Kingsoft Cloud Holdings Limited has released its unaudited condensed consolidated financial results for the three months ended June 30, 2026, prepared under U.S. GAAP and filed with the U.S. Securities and Exchange Commission. The announcement for...
Kingsoft Cloud Narrows Losses Amid Double-Digit Revenue Growth
Aug 19, 2026
Kingsoft Cloud reported strong top-line growth for the six months ended June 30, 2026, with revenues rising 33.7% year-on-year to RMB5.78 billion and gross profit increasing 23.6% to RMB812 million. Despite remaining loss-making, the company signi...
Kingsoft Cloud Sets August 19 Board Meeting and Earnings Call for Q2 and Interim 2026 Results
Aug 6, 2026
Kingsoft Cloud Holdings Ltd has scheduled a board meeting for August 19, 2026 to review and approve its unaudited second quarter results for the three months ended June 30, 2026 and its unaudited interim consolidated results for the first half of ...
Kingsoft Cloud Grants 16.2 Million RSUs Under 2026 Incentive Plan
Jul 17, 2026
Kingsoft Cloud Holdings Ltd has granted 16,220,972 restricted share units to 438 employees under its 2026 Share Incentive Plan, representing about 0.36% of its total issued shares. The RSUs are priced at HK$0.01 per share versus a HK$4.92 market p...
Kingsoft Cloud Shareholders Approve All Resolutions at 2026 AGM
Jun 30, 2026
Kingsoft Cloud Holdings Ltd reported that all resolutions tabled at its annual general meeting on June 30, 2026 were approved by shareholders via poll, including the adoption of its audited consolidated financial statements for the year ended Dece...
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.