Yamato Securities: Maintains "buy" rating on Kingsoft Cloud (03896.HK) and raises target price to HK$11.

According to the Wise Financial APP, Daiwa Research report stated that Kingsoft Cloud (03896.HK) had a stable performance in the third quarter, achieving operating profit for the first time and turning net loss into profit. Daiwa maintained a "buy" rating for Kingsoft Cloud, raising the target price from 10.5 Hong Kong dollars to 11 Hong Kong dollars. Daiwa expects fourth quarter revenue to reach 2.69 billion yuan, third quarter gross profit margin to be 15.4%, benefiting from delayed recognition of some revenue. The bank expects the company to achieve operating profit in 2026. The bank raised its revenue forecast for 2026-2027 by 0.5-0.6% to reflect the increasing contribution of artificial intelligence revenue.