Market Insight | Kingsoft Cloud's stock price rises by over 4%, becoming the sole strategic cloud platform within Xiaomi & Kingsoft ecosystem
Kingsoft Cloud is now up more than 4%, as of the time of publication, up 3.7% to HKD 1.4, with a turnover of HKD 11.0025 million. Everbright Securities pointed out that as the only strategic cloud platform within the Xiaomi & Kingsoft ecosystem, Kingsoft Cloud is expected to continue benefiting from the high-performance computing power demand brought by SU7 delivery and WPSAI commercialization. Kingsoft Cloud actively seizes the AI development opportunities, on one hand, further enhancing infrastructure investment to pave the way for large-scale cluster deployment required for future AI training; on the other hand, the company has established a wholly-owned subsidiary, "Beijing Kingsoft Intelligent Technology Co., Ltd.", to seize the opportunities of enterprise intelligent digital transformation and AI professional services. In addition, in 1Q24, Kingsoft Cloud achieved positive EBITDA for the first time since its establishment. The bank believes that the improvement in revenue structure + control of upstream costs are expected to bring continuous growth in profit, and it is expected that the company's gross profit margin for the full year 2024 will steadily increase to 17%, and the adjusted EBITDA margin is expected to reach 4%
According to the VETIMES APP, Kingsoft Cloud (03896) is now up more than 4%, as of the time of publication, up 3.7% to HKD 1.4, with a turnover of HKD 11.0025 million.
Guotai Junan Securities pointed out that as the only strategic cloud platform within the Xiaomi & Kingsoft ecosystem, Kingsoft Cloud is expected to continue benefiting from the high-performance computing power demand brought by SU7 delivery and the commercialization of WPSAI. Kingsoft Cloud actively seizes the AI development opportunities, on one hand, further enhancing infrastructure investment to pave the way for large-scale cluster deployment capabilities required for future AI training; on the other hand, the company has established a wholly-owned subsidiary, "Beijing Kingsoft Intelligent Technology Co., Ltd.," to seize the opportunities in enterprise intelligent digital transformation and AI professional services.
In addition, in 1Q24, Kingsoft Cloud achieved positive EBITDA for the first time since its establishment. The bank believes that improvements in revenue structure and upstream cost control are expected to bring continuous growth in profitability. It is expected that the company's gross profit margin for the full year 24 will steadily increase to 17%, and the adjusted EBITDA margin is expected to reach 4%