Kingsoft Cloud (03896.HK) Becomes a Hong Kong Hot Stock: Analysis of AI-Driven Growth and First Profit Milestone

The event occurred on November 28, 2025, at 16:30 (UTC+8), when Kingsoft Cloud (03896.HK) made it to the East Money App Hong Kong Stock Popularity Hot List, reflecting high market attention to its recent performance [0].

This analysis is based on the Tushare dc_hot (East Money App Hong Kong Stock Market Popularity List) event [0]. As an independent cloud service provider, Kingsoft Cloud (03896.HK) achieved Q3 2025 revenue of RMB 2.478 billion (YoY +31.4%), adjusted net profit of RMB 28.73 million (first-time profit), and over 120% growth in AI-related business billings [0]. Everbright Securities maintained a “Buy” rating, with analysts’ average target price at HK$18.14 (potential upside of 50.29%) [0], and the Stock Connect holding ratio reached 27.59% [3].

Kingsoft Cloud is a leading independent cloud service provider in China, offering a full suite of IaaS and PaaS cloud products [0]. Q3 2025 results show revenue growth accelerated from 24% in Q2 to 31%, with an adjusted operating margin of 0.6% [0]. Public cloud revenue was RMB1.75 billion (YoY +49%), of which AI-related revenue accounted for 39%, and Q1 AI revenue grew 228% YoY [0]. In terms of market competition, Kingsoft Cloud competes with Alibaba Cloud, Tencent Cloud, and Huawei Cloud in the cloud computing market but has a relatively small share [0]. Industry trends indicate accelerated integration of AI and cloud computing; in 2024, China’s cloud computing market was led by Alibaba Cloud and Huawei Cloud [7].

1. AI-Driven Profit Inflection Point
   : The high-speed growth of AI business (over 120%) drove the company to achieve its first adjusted net profit, marking improved profitability [0].
2. Ecosystem Synergy Effect
   : Strategic cooperation with Xiaomi and the Kingsoft ecosystem enhances customer base and business expansion capabilities [0].
3. Stock Connect Fund Preference
   : A holding ratio of 27.59% reflects mainland investors’ recognition of its growth potential [3].

• Growth in demand for AI cloud services brings business expansion opportunities [0][7]
• Improved profitability attracts more institutional investors [0]
• Analyst target prices indicate 24%-50% upside potential [0]

• Intense competition in the cloud computing market, facing pressure from large vendors [0][6]
• Fast technology iteration requires continuous R&D investment [0]
• Macroeconomic fluctuations may affect corporate IT spending [0]

###5. Key Information Summary
Kingsoft Cloud (03896.HK) has performed strongly recently; accelerated Q3 revenue growth, first-time profit, and AI business explosion are core driving factors. Analysts maintain positive ratings, and Stock Connect fund inflows show market confidence. Despite competitive pressure, its growth potential in the AI cloud service sector is worth attention. This analysis provides an objective market background and does not constitute investment advice.