Chinese cloud services firm Kingsoft's Q3 revenue rises on AI customer expansion
Kingsoft Cloud's Q3 revenue grew 31.4% year-over-year, driven by AI customer expansion. The company achieved its first profitable quarter with an adjusted net profit of RMB28.7 million. Strategic collaboration with the Xiaomi-Kingsoft ecosystem boosted revenue by 83.8% year-over-year. Despite improved cost management, the company did not provide future guidance. Analysts rate the stock as a "strong buy," with a median price target of HK$9.20, 35.3% above its current price.
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Overview
- Kingsoft Cloud Q3 rev grows 31.4% yr/yr, driven by AI customer expansion
- Adjusted net profit turns positive at RMB28.7 mln, marking first profitable quarter
- Strategic collaboration with Xiaomi-Kingsoft ecosystem boosts revenue by 83.8% yr/yr
Outlook
- Company did not provide specific guidance for future quarters or full year in press release
Result Drivers
- AI DEMAND - Revenue from public cloud services surged 49.1% yr/yr, driven by increased AI demand
- XIAOMI-KINGSOFT ECOSYSTEM - Strategic collaboration with Xiaomi-Kingsoft ecosystem boosted revenue by 83.8% yr/yr
- COST CONTROL - Improved cost management and non-recurring income contributed to profitability turnaround
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q3 Gross RMB
Profit 380.90
mln
Q3 RMB
Operatin 526.17
g mln
Expenses
Q3 -RMB
Operatin 145.28
g Income mln
Analyst Coverage
- The current average analyst rating on the shares is “strong buy” and the breakdown of recommendations is 6 “strong buy” or “buy”, no “hold” and no “sell” or “strong sell”
- The average consensus recommendation for the it services & consulting peer group is “buy.”
- Wall Street’s median 12-month price target for Kingsoft Cloud Holdings Ltd is HK$9.20, about 35.3% above its November 19 closing price of HK$5.95
Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
