Hot Stock Analysis: Kingsoft Cloud (03896.HK)

Kingsoft Cloud (03896.HK) is a company in the Technology/Cloud Computing/SaaS sector, with a current stock price of approximately HK$6.21 (as of December 1, 2025 [5]). It has become a hot stock mainly driven by the following factors:

1. Strong Q3 Performance
   : Q3 2025 revenue was RMB 2.478 billion, up 31.4% year-on-year, faster than the 24.3% growth in Q2; net loss narrowed by 90% to RMB 7.847 million, adjusted net profit turned profitable for the first time to RMB 28.733 million, and EBITDA margin rose to 33.4% [3].
2. Rapid Growth of AI Business
   : Public cloud service revenue increased by 49.1% year-on-year to RMB 1.752 billion; AI business billings were RMB 782 million, up about 120% year-on-year. As the proportion of AI business increases, costs are mainly depreciation, and subsequent EBITDA margin is expected to remain above 20% [3].
3. AI Industry Prospects Support
   : Market demand for AI cloud platforms is strong, with computing power as the focus of competition. As an AI infrastructure provider, Kingsoft Cloud benefits from the industry growth dividend [3].

On December 1, 2025, Kingsoft Cloud’s stock closed at HK$6.21, down 2.82% [5]. There was a large sell order of 1.1 million shares on the day, with a transaction price of HK$6.11, involving RMB 6.721 million; the highest price was HK$6.33, and the lowest was HK$6.07 [1]. Although the stock price has fluctuated recently, the overall trend is supported by expectations of AI business growth [3].

The AI theme continues to heat up, and Kingsoft Cloud has attracted investor attention with its rapid growth in AI business [3]. As the only strategic platform of the Xiaomi ecosystem, the company has a stable source of income, and the market is optimistic about its differentiated competitive advantages [3]. Institutional investors suggest paying attention to its fundamental improvement and consider it a target worth buying on dips [3].

1. Stock Price Volatility Risk
   : Despite excellent results, the stock price has fallen recently; investors need to pay attention to short-term fluctuations [5].
2. Industry Competition
   : Fierce competition with leading vendors such as Alibaba Cloud and Baidu Intelligent Cloud, making market share growth challenging [3].
3. Equity Dilution
   : In September 2025, the company announced the placement of 282 million new shares to raise funds for AI business development, which may lead to equity dilution [4].

Kingsoft Cloud (03896.HK) has become a hot Hong Kong stock due to its AI-driven Q3 results exceeding expectations. The company’s rapid growth in the AI field and industry prospects support its long-term potential, but it also faces risks such as industry competition, short-term stock price fluctuations, and equity dilution. Investors should pay attention to its fundamental improvement and AI business development trends while noting market risks.

: Strong demand for AI cloud platforms; as an AI infrastructure provider, Kingsoft Cloud benefits from industry growth dividends; strategic support from the Xiaomi ecosystem provides a stable source of income [3].
: Fierce industry competition, making market share growth difficult; recent stock price fluctuations, with short-term investment risks; equity dilution may affect shareholder rights [3][4][5].

• Recent Resistance Level: HK$6.33 [1]
• Recent Support Level: HK$6.07 [1]