Daiwa: Raises the target price of KINGSOFT CLOUD (03896) to HKD 13, maintains "Buy" rating.
The bank has raised its revenue forecast for Kingsoft Cloud for the fiscal years 2026 to 2028 by 2% to 28%, reflecting a stronger outlook for AI cloud growth. It has reaffirmed its "Buy" rating and increased the target price from HKD 11 to HKD 13.
DAHUA released a research report stating that KINGSOFT CLOUD (03896) performed better than expected in the second quarter, particularly in terms of profitability. The strong growth of its AI cloud business and improved operational efficiency have driven the gross margin and adjusted EBITDA margin significantly above market expectations. The bank anticipates a more optimistic outlook for KINGSOFT CLOUD, as demand remains robust, estimating that the growth momentum will accelerate in the second half of this year, with margins also slightly expanding. The bank raised its revenue forecast for KINGSOFT CLOUD for the fiscal years 2026 to 2028 by 2% to 28%, reflecting a stronger outlook for AI cloud growth, reaffirming a "Buy" rating, and increasing the target price from HKD 11 to HKD 13.
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