Understanding the Market | Kingsoft Cloud rose nearly 13% in the 盘中 as third-quarter profit levels accelerated, benefiting from increased demand from Xiaomi and the Kingsoft ecosystem

Zhitong
2024.11.25 01:38
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Kingsoft Cloud rose nearly 13%, and as of the time of writing, it increased by 10.26%, reaching HKD 3.76, with a trading volume of HKD 118 million. In terms of news, Kingsoft Cloud previously announced its third-quarter results, with total revenue reaching RMB 1.886 billion, a year-on-year increase of 16.0%; gross profit was RMB 303.4 million, a year-on-year increase of 54.6%; non-GAAP EBITDA was approximately RMB 185 million, turning from loss to profit year-on-year. The announcement stated that the year-on-year increase in revenue was mainly due to the growth in revenue from Xiaomi and the Kingsoft ecosystem, as well as AI-related customers, and the increased demand for industry cloud, while part of the increase was offset by the company's proactive reduction in the scale of low-margin content delivery network (CDN) services. CICC previously published a research report indicating that Kingsoft Cloud announced a financing lease agreement with CITIC Financial Leasing to accelerate investments related to AI infrastructure. Kingsoft Cloud also benefits from the increased demand from Xiaomi and the Kingsoft ecosystem, and is expected to be the first to gain resource demand increments from the AI business layout of ecosystem customers. Considering that Kingsoft Cloud's investment pace in AI computing power is faster than expected and the demand scale is higher than anticipated, CICC raised the group's revenue forecasts for this year and next year by 1.5% and 5.7%, respectively, to RMB 7.5 billion and RMB 8.3 billion

According to Zhitong Finance APP, Kingsoft Cloud (03896) rose nearly 13% during the trading session, and as of the time of writing, it has increased by 10.26%, trading at HKD 3.76, with a transaction volume of HKD 118 million.

In terms of news, Kingsoft Cloud previously announced its third-quarter performance, with total revenue reaching RMB 1.886 billion, a year-on-year increase of 16.0%; gross profit was RMB 303.4 million, a year-on-year increase of 54.6%; non-GAAP EBITDA was approximately RMB 185 million, turning from loss to profit year-on-year. The announcement stated that the year-on-year increase in revenue was mainly due to the growth in revenue from Xiaomi and the Kingsoft ecosystem as well as AI-related customers, and the demand for industry cloud, while part of the increase was offset by the company's proactive reduction in the scale of low-margin content delivery network (CDN) services.

CICC previously published a research report indicating that Kingsoft Cloud announced a financing lease agreement with CITIC Financial Leasing to accelerate investments related to AI infrastructure. Kingsoft Cloud also benefits from the increased demand from Xiaomi and the Kingsoft ecosystem, and is expected to be the first to gain resource demand increments brought by the AI business layout of ecological customers. Considering that Kingsoft Cloud's investment pace in AI computing power is faster than expected and the demand scale is higher than anticipated, CICC has raised the group's revenue forecasts for this year and next year by 1.5% and 5.7%, respectively, to RMB 7.5 billion and RMB 8.3 billion

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