Kingsoft Corporation (03888.HK) Hot Stock Analysis: Catalysts and Risk Assessment

Kingsoft Corporation (03888.HK) belongs to the application software sector. On January 5, 2026, its closing price was HK$29.70, up 1.78% from the previous trading day, with a trading volume of 10.87 million shares, which was higher than in previous days, indicating increased market attention[0]. The main catalysts for the stock becoming popular recently include:

1. Analyst Rating Upgrade
   : Galaxy Securities initiated coverage with a ‘Buy’ rating, noting that B-end WPS 365 revenue grew 71.61% YoY in Q3 2025, and WPS AI has been implemented in party and government agencies[1][2].
2. Continuous Share Repurchase
   : The company has repurchased shares multiple times since December 2025, such as repurchasing 713,600 shares for HK$19.9966 million on December 29, showing management’s confidence in the outlook[2].
3. Game Business Transformation
   : Actively expanding new categories and going overseas with the ‘Jian Wang 3’ IP as the core; user return has been significant since the launch of ‘Jian Wang 3 Wujie’[1].

1. AI Empowerment Becomes Long-Term Growth Engine
   : The implementation of WPS AI in government and B-end markets brings certain growth space for the office business, linking with the overall development trend of the AI industry[1][2].
2. Repurchase Behavior Strengthens Market Confidence
   : Management’s continuous share repurchases directly convey recognition of the current valuation to the market, driving short-term stock price increases[2].
3. Game Business Transformation Needs Time to Verify
   : Although ‘Jian Wang 3 Wujie’ has achieved user return, the differentiated performance of new games in the market and the success of the overseas strategy remain to be seen[1].

: Continuous penetration of AI office business and transformation and overseas expansion of game business provide impetus for the company’s long-term growth[1][2].
: In Q3, online game and other business revenues decreased by 47% YoY, putting short-term performance under pressure; there is uncertainty in the market performance of new games; the current P/E ratio is 22.00, and if AI empowerment and game transformation are not as expected, it may face valuation correction[1].
: Recent support level is around HK$28.26 (closing price on December 30, 2025), and resistance level is HK$30.00 (integer mark).

Kingsoft Corporation has recently benefited from AI business progress, analyst rating upgrades, and share repurchases, with its stock price showing a continuous upward trend. As a leading domestic office software company, its AI-enabled office business has long-term development potential, but short-term game business pressure and valuation risks need to be focused on. Investors should combine technical price levels with changes in the company’s fundamentals to rationally evaluate investment opportunities.