HK Stock Market Move | KINGSOFT CLOUD (03896) opens higher by over 5% as the company benefits from AI development and support from the Kingsoft ecosystem. UBS points out that the market undervalues its potential for development.

KINGSOFT CLOUD (03896) opened more than 5% higher, rising 5.76% to HK$4.96 as of the time of writing, with a turnover of 7.6285 million Hong Kong dollars. On the news front, a recent research report from UBS pointed out that KINGSOFT CLOUD has benefited from the development of AI and support from the Kingsoft ecosystem. KINGSOFT CLOUD's third-quarter performance was solid, exceeding market expectations, which helps increase investors' expectations for its continued revenue and profit recovery. The bank believes that KINGSOFT CLOUD's current stock price is still below the valuation of independent cloud companies in China, and that the market is underestimating the potential development opportunities in Kingsoft and AI businesses. KINGSOFT CLOUD previously announced that it has signed a new framework agreement with Xiaomi, with suggested annual ceilings of 2.31 billion yuan, 3.138 billion yuan, and 4.035 billion yuan for the years 2025-2027. Zhongjin Securities believes that the financing support from Xiaomi will provide flexible and reliable liquidity support for the company's future infrastructure investment, and the company is also expected to support incremental computing power investment through operating cash flow.