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3888: Share Buyback And Earnings Momentum Will Drive Strong Future Performance

Digital Transformation And AI Integration Will Expand Global Reach

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3888
AnalystConsensusTarget
Not Invested
Published 07 Dec 2024

Update shared on 07 Dec 2025

Fair value Decreased 1.62%
Previous
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AnalystConsensusTarget's Fair Value
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1Y
-13.8%
7D
1.8%

Analysts have trimmed their price target on Kingsoft slightly to approximately $40.87 from $41.54. This reflects modestly softer assumptions for long term revenue growth and profit margins, which are only partially offset by a marginally higher expected future price to earnings multiple.

What's in the News

  • Board meeting scheduled for November 19, 2025, to review and approve unaudited quarterly results for the three months ended September 30, 2025, covering Kingsoft and its subsidiaries (Key Developments).
  • Update on the existing share buyback program, with no shares repurchased between January 1, 2025, and May 29, 2025, and cumulative completion of 4,176,600 shares repurchased for HKD 87.18 million under the June 17, 2024, authorization (Key Developments).

Valuation Changes

  • The fair value estimate has declined slightly from about HK$41.54 to approximately HK$40.87 per share, reflecting more conservative assumptions.
  • The discount rate has edged down marginally from around 9.11 percent to about 9.09 percent, implying a slightly lower required return.
  • Revenue growth has eased modestly from roughly 15.24 percent to about 15.09 percent, indicating a small downward revision to long term top line expectations.
  • Net profit margin has fallen moderately from around 17.77 percent to about 17.07 percent, signaling more cautious assumptions on profitability.
  • The future P/E has risen slightly from roughly 31.85 times to about 32.56 times, partially offsetting weaker growth and margin forecasts in the valuation.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.