HK Stock Market Move | KINGSOFT CLOUD (03896) rose more than 6% in early trading, benefiting from the future huge demand for cloud services from Xiaomi Group and Kingsoft Group.

KINGSOFT CLOUD (03896) rose more than 6% in early trading, rising 4.14% to HKD 5.53 as of the time of writing with a trading volume of HKD 1.86 billion. Huafu Securities pointed out that with the construction of Xiaomi's AI ecosystem, KINGSOFT CLOUD's AI revenue growth rate has accelerated on a quarterly basis. In the future, with the gradual application of scenarios such as intelligent driving and WPS AI, the proportion is expected to continue to increase. In addition, on November 19, 2024, KINGSOFT CLOUD signed a new framework agreement with Xiaomi, proposing annual limits for related transactions with Xiaomi and Kingsoft in 2025/2026/2027. The annual limit for Xiaomi cloud services has been significantly increased to 23.10 billion, 31.38 billion, and 40.35 billion, further consolidating the business cooperation between KINGSOFT CLOUD and Xiaomi. Haitong believes that Kingsoft is a leading cloud service provider in China with continuously improving technology, products, and service capabilities. The company's strategic transformation to fully embrace AI and strategically optimize revenue structure to enhance profitability has achieved significant results. Benefiting from the future large cloud service demand from Xiaomi Group and Kingsoft Group, as well as considering the renewal of large framework agreements with Kingsoft Group and Xiaomi Group, public cloud service revenue is expected to grow rapidly.