Chinese cloud services firm Kingsoft's Q3 revenue rises on AI customer expansion

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

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: ID:nPn7cPY1Ga

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(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.)