Kingsoft Cloud (03896.HK) Hot Stock Analysis Report

Kingsoft Cloud (03896.HK) has recently become a hot stock in Hong Kong, mainly driven by multiple positive catalysts:

1. Performance Breakthrough and Business Structure Optimization
   : Q3 2025 revenue reached RMB 2.48 billion, up 31% year-over-year. Adjusted net profit turned profitable for the first time at RMB 28.73 million, marking entry into large-scale profitability [1]. Among these, the billing revenue of intelligent computing cloud business increased by 120% year-over-year to RMB 780 million, accounting for 45% of public cloud revenue and becoming the core growth engine; revenue from the Xiaomi-Kingsoft ecosystem was RMB 690 million, up 84% year-over-year, accounting for 28% of total revenue, with significant ecosystem synergy effects [1].
2. AI Ecosystem Expansion and Market Recognition
   : On December 17, 2025, Kingsoft Cloud’s StarFlow Platform launched the Xiaomi MiMo-V2-Flash model, enriching the AI model ecosystem [2]; on December 22, it won the Gelonghui “Annual Hong Kong Stock Connect Excellence Award”, demonstrating market recognition of its AI strategy implementation [1].
3. Institutional Support and Management Confidence
   : Goldman Sachs slightly raised its target price to USD 13.8; institutions such as UBS, Bank of America, and JPMorgan Chase gave “Buy” ratings [7]; on December 18, the company granted 4.4 million restricted share units to employees, showing management’s confidence in long-term development [3].

1. Dual-wheel Growth Driven by AI and Ecosystem Synergy
   : Relying on the advantages of the Xiaomi-Kingsoft ecosystem and AI technology investment, Kingsoft Cloud has transformed from loss to profit. The rapid growth of the intelligent computing cloud business reflects the explosion of AI computing power demand and the company’s competitive advantage in this field [1].
2. Divergence Between Institutional and Market Sentiment
   : Although institutions are generally optimistic about the company’s future growth, Eastmoney Forum shows mixed investor sentiment. Some investors expressed concerns about low trading volume and recent stock price decline [4]. The closing price on December 19, 2025 was HK$5.66, down about 10% in the past month, and trading volume was below the 5-day average [7].

• AI computing power demand continues to grow, and the intelligent computing cloud business is expected to further expand its market share [1].
• Continuous support from the Xiaomi-Kingsoft ecosystem provides the company with stable business sources and synergy development space [1].
• Unanimous “Buy” ratings from institutions indicate that long-term investment value has been recognized [7].

• Valuation Risk
  : The company’s current price-to-earnings ratio is in a loss state. Although profitability has achieved a breakthrough, future growth still has uncertainties [6].
• Market Competition Risk
  : The cloud computing market is highly competitive, facing competition pressure from leading players such as Alibaba Cloud and Tencent Cloud.
• Ecosystem Dependency Risk
  : The company has a high degree of revenue dependency on the Xiaomi-Kingsoft ecosystem (28%), and changes in ecosystem business may affect performance [1].
• Liquidity Risk
  : Recent trading volume is below average, posing liquidity risks [7].

• Stock Code: 03896.HK, Sector: Technology/Cloud Computing [6].
• Q3 2025 revenue: RMB 2.48 billion, up 31% year-over-year; adjusted net profit: RMB 28.73 million, first-time profitability [1].
• Intelligent computing cloud business: up 120% year-over-year, accounting for 45% of public cloud revenue; ecosystem revenue: up 84% year-over-year, accounting for 28% of total revenue [1].
• Recent Stock Price: Closing price on December 19, 2025 was HK$5.66, down about 10% in the past month [7].
• Institutional Ratings: Goldman Sachs, UBS, Bank of America, etc. gave “Buy” ratings; Goldman Sachs’ target price is USD 13.8 [7].