Cautious Optimism for Kingsoft Cloud Amid AI-Driven Growth and Cash Flow Challenges
[Brokerage Focus] Open Source Securities maintains a 'buy' rating for Kingsoft (03888), pointing out that Kingsoft Cloud is expected to benefit from the Xiaomi ecosystem and AI-driven initiatives, which may enhance its valuation.
Kingsoft Financial News | According to research from Open Source Securities, the office software business of Kingsoft (03888) experienced a year-on-year revenue growth of 12.5% in Q3 2024, with the monthly active users of major products increasing by 4.9% year-on-year and accelerating quarter-on-quarter. The revenue from personal subscription services grew by 17.2% year-on-year, and WPS AI 2.0 provided a more convenient creative experience, enhancing paid stickiness and conversion rates. The revenue from institutional subscriptions remained flat year-on-year and increased by 23.8% quarter-on-quarter. The institution estimated that the impact of the shift in subscription model (from annual billing to monthly billing) has significantly diminished, while the company actively expands into state-owned and private enterprise markets, with contracts.
[Hong Kong Stock Connect] Kingsoft (03888) once rose nearly 5%, and Citibank indicated that its game business performance exceeded expectations.
Kingwos Finance News | kingsoft (03888) stock price rose, up nearly 5% at one point during the day, reaching a high of 33.55 Hong Kong dollars. As of the time of publication, it is still up 2.82%, at 32.85 Hong Kong dollars, with a turnover of 0.188 billion Hong Kong dollars. In the report, Olay pointed out that kingsoft's gaming business performance exceeded expectations, with a 78% year-on-year increase in third-quarter gaming revenue and profits. The institution believes that kingsoft's gaming business performance this year is extremely strong, which may set a higher benchmark for the 2025 fiscal year. Nevertheless, the company expects the five new games to be launched in 2025 to still maintain strong performance.
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