GTHT Securities has released a research report maintaining an "Add" rating on Kingsoft Cloud (03896). The company is entering a new development phase driven by AI-fueled business growth. The firm forecasts the company's operating revenue for 2025/26/27 to reach 9.51/11.685/14.338 billion yuan, respectively. Considering the company's benefit from the explosive growth of the AI computing cloud market, a dynamic price-to-sales (PS) ratio of 3.5x for 2026 is applied, yielding a target price of HKD 10.03. The key points from GTHT Securities are as follows:
AI revenue is growing rapidly, driving an acceleration in overall growth. In Q3 2025, the company achieved revenue of 2.478 billion yuan, a year-on-year increase of 31.4%. This compares to revenue growth rates of 10.94% and 24.18% in Q1 and Q2 2025, respectively, indicating a further acceleration in Q3 growth momentum, attributable to continuous upgrades in AI infrastructure and products, with AI revenue being a significant contributor. Breaking it down, public cloud service revenue in Q3 2025 was 1.752 billion yuan, up 49.1% year-on-year, within which AI revenue reached 782 million yuan, surging approximately 120% year-on-year, reflecting robust AI demand. Industry cloud service revenue for Q3 2025 was 726 million yuan, a slight increase of 2.2% year-on-year. Strategic cooperation within the Xiaomi-Kingsoft ecosystem continues to deepen, with ecosystem-derived revenue reaching 691 million yuan, a substantial increase of 83.8% year-on-year.
Adjusted profit turned positive for the first time in Q3 2025, validating economies of scale. The company achieved an adjusted operating profit of 1.5 million yuan and an adjusted net profit of 2.9 million yuan in Q3 2025. This marks the first quarter of profitability on an adjusted basis compared to Q3 2024, demonstrating continuous improvement in profitability and the effective execution of the company's high-quality, sustainable development strategy.
The AI cloud market is experiencing high-speed growth, and the company continues to make significant investments in its AI business. On October 2, 2025, the company completed a new share placement, issuing a total of 338 million shares at a price of HKD 8.29 per share, raising net proceeds of approximately HKD 2.76 billion. Eighty percent of these funds are allocated to support AI business initiatives, including expanding infrastructure and enhancing cloud service capabilities. Regarding technology and model ecosystems, Kingsoft Cloud's Xingliu platform has completed a strategic upgrade from a resource management platform to a comprehensive, one-stop platform covering the entire AI training and inference workflow. It has achieved a full-chain闭环 from heterogeneous resource scheduling and self-healing for training task failures to supporting robotics industry applications and the commercial deployment of model API services. The platform already supports nearly 40 different models, including Xiaomi MiMo, DeepSeek, Qwen3, and Kimi.
Risk warnings include customer demand falling short of expectations, slower-than-expected development and application of AI technologies, and intensifying market competition.