Kingsoft Cloud (03896.HK) Hong Kong Hot Stock Analysis

Kingsoft Cloud (stock code: 03896.HK) belongs to the Software-Applications industry in the Technology sector. As of December 31, 2025 GMT+8 12:08:27, its current price is 5.51HKD with a market capitalization of 24.15B HKD[0].

1. Growth Potential of AI Business
   : The Q2 2025 financial report shows that AI-related revenue accounted for nearly half of the company’s public cloud service revenue, driving its NASDAQ Depositary Receipts (KC) up by 9.1%[2]. Although the news has been released for several months, the overall rise of the Hong Kong technology sector has made investors refocus on the long-term growth prospects of its AI business.
2. Parent Company’s Incentive Plan
   : On December 29, 2025, parent company Kingsoft Software granted 669,000 restricted shares to 47 core management and technical employees to recognize their contributions and strengthen talent retention[1]. This move was interpreted by the market as a signal of confidence in the company’s future development.

• Price Trend
  : From December 17 to December 31, 2025, the stock price fell from 5.90HKD to 5.51HKD, with a maximum drop of 1.25% during the period, showing a slight fluctuating downward trend[0].
• Volume Analysis
  : The average daily volume is about 28.93M shares, among which the volume on December 18 reached 64.95M shares, far higher than the 3-month average volume (52.72M shares), indicating abnormally active trading activities[0].
• Support/Resistance Levels
  : The recent support level is around 5.45HKD (the lowest price on December 31), and the resistance level is around 5.97HKD (the highest price on December 17)[0].

The technical indicator RSI(14) is 39.99, close to the neutral zone, indicating that the stock price has not entered the overbought or oversold state temporarily[0]. There is no latest information on analyst rating adjustments, but the growth of AI business and the parent company’s equity incentive plan may boost investors’ expectations for its future performance.

1. Sustained Attraction of AI Business
   : Although the AI revenue growth data comes from Q2, against the backdrop of the overall rise of the Hong Kong technology sector, investors still pay high attention to the AI track. The increase in the proportion of Kingsoft Cloud’s AI business has brought it sustained attention.
2. Market Reaction to Parent Company’s Signal
   : The parent company’s employee incentive plan not only helps retain talents but also, more importantly, conveys the management’s confidence in the company’s future to the market, which is particularly critical in the highly competitive cloud service industry.
3. Thoughts on Abnormal Trading Volume
   : The sudden increase in volume on December 18 may reflect the market’s early response to changes in the company’s fundamentals, but the specific catalyst still needs to be verified with subsequent information.

• The rapid growth of AI business provides a new profit growth point for the company.
• The overall upward trend of the Hong Kong technology sector may bring valuation improvement opportunities for it.

• Profitability Risk
  : As of December 31, 2025, the company’s net profit was -973 million HKD, with a net profit margin of -10.78%, still in a loss state[0].
• Industry Competition
  : As an independent cloud service provider in China, Kingsoft Cloud faces fierce competition from large vendors such as Alibaba Cloud and Tencent Cloud, limiting market share growth.
• Valuation Risk
  : The company’s price-to-sales ratio (P/S) is 2.15 and price-to-book ratio (P/B) is 3.27. These valuation indicators have limited reference value in the loss state.

Kingsoft Cloud (03896.HK) has become a hot Hong Kong stock due to the growth potential of its AI business and the confidence signal from its parent company, and the abnormal trading volume on December 18 has also attracted attention. Recently, the stock price has shown a slight fluctuating downward trend, with a support level of around 5.45HKD and a resistance level of around 5.97HKD. Investors need to pay attention to risks such as the company’s loss state and industry competition, while focusing on the progress of AI business and the overall trend of the Hong Kong technology sector. This report aims to provide an objective background for decision support and does not constitute investment advice.