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KC: Higher Future Multiple Will Support Shares Despite Slower Expansion

Rising Regulatory And Supply Chain Risks Will Curtail Margins

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KC
AnalystLowTarget
Not Invested
Published 07 Aug 2025

Update shared on 12 Dec 2025

Fair value Increased 9.45%
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AnalystLowTarget's Fair Value
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1Y
16.3%
7D
-5.5%

Analysts have raised their price target for Kingsoft Cloud Holdings by approximately 9 percent to an implied fair value of about $14.18 per share, citing a higher long term valuation multiple despite moderating revenue growth expectations and largely unchanged profit margin forecasts.

What's in the News

  • Board meeting scheduled for November 19, 2025, to review and approve unaudited third quarter 2025 results for Kingsoft Cloud Holdings and its consolidated entities (company filing).
  • Completion of a follow-on equity offering totaling approximately HKD 2.80 billion, issuing 338 million ordinary shares at HKD 8.29 per share under Regulation S with a subsequent direct listing feature (company filing).
  • Earlier filing of the same follow-on equity offering for HKD 2.80 billion in ordinary shares at HKD 8.29 per share, setting terms ahead of the completed transaction (company filing).

Valuation Changes

  • Fair Value: implied fair value per share has risen moderately from approximately $12.96 to about $14.18.
  • Discount Rate: required return has increased slightly from roughly 10.86 percent to about 11.51 percent.
  • Revenue Growth: long term annual revenue growth assumption has fallen meaningfully from around 16.55 percent to about 13.22 percent.
  • Net Profit Margin: projected net profit margin is largely unchanged, edging down marginally from roughly 7.00 percent to about 6.98 percent.
  • Future P/E: assumed future valuation multiple has risen notably from about 45.9x earnings to approximately 51.2x earnings.

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