Hong Kong Stock Market Update: KINGSOFT CLOUD surged over 14% again. Morgan Stanley stated that its breakeven point for EBITDA is expected to be reached earlier than anticipated.
KINGSOFT CLOUD surged by 18% yesterday and rose by over 14% in pre-market trading today. As of the time of writing, it is up by 14.63% at HKD 1.88, with a trading volume of HKD 4.685 million. According to reports from JPMorgan Chase, KINGSOFT CLOUD is expected to achieve EBITDA breakeven in the first quarter of 2024 and full-year EBITDA breakeven in 2024 for the first time (while consensus expectations were for EBITDA losses). The bank pointed out that even if there is no significant turnaround in revenue in the short term, the speed of profit margin expansion for KINGSOFT CLOUD will exceed market expectations; the reduction in depreciation expenses related to the disposal of significant assets in the third quarter is also a driving factor. The bank has upgraded its rating on KINGSOFT CLOUD to "Hold." Bank of America Securities previously released a report stating that the company could benefit in the long run from the increasing cloud computing penetration rate and the application of multi-cloud computing in the mainland, believing that the expansion of its AI cloud services may bring upward potential to market expectations. The bank believes that the current valuation already reflects the company's stable growth prospects.
Zhitong App learned that KINGSOFT CLOUD (03896) surged by 18% yesterday and rose by over 14% in pre-market trading today. As of the time of writing, it has increased by 14.63% to HKD 1.88, with a trading volume of HKD 4.685 million.
On the news front, JPMorgan Chase released a research report stating that KINGSOFT CLOUD is expected to achieve EBITDA breakeven in the first quarter of 2024 and achieve full-year EBITDA breakeven for the first time in 2024 (while consensus expectations are for EBITDA losses). The bank pointed out that even if there is no significant turnaround in KINGSOFT CLOUD's revenue in the short term, its profit margin expansion speed will exceed market expectations; the reduction in depreciation expenses related to the disposal of significant assets in the third quarter is also a driving factor. The bank has upgraded KINGSOFT CLOUD's rating to "Hold".
Bank of America Securities previously released a research report stating that the company could benefit in the long term from the increasing cloud computing penetration rate and the application of multi-cloud computing in the mainland. They believe that the expansion of its artificial intelligence cloud services may bring upward potential to market expectations, and the bank believes that the current valuation already reflects the company's stable growth prospects.