SEHK:3888

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Executive Summary

Kingsoft Corporation Limited, an investment holding company, operates as a software and Internet service company in Mainland China, Hong Kong, and internationally. More Details


Snowflake Analysis

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Kingsoft's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3888 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 3888's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-1.6%

3888

4.1%

HK Software

2.2%

HK Market


1 Year Return

118.2%

3888

167.4%

HK Software

7.2%

HK Market

Return vs Industry: 3888 underperformed the Hong Kong Software industry which returned 164.3% over the past year.

Return vs Market: 3888 exceeded the Hong Kong Market which returned 7.5% over the past year.


Shareholder returns

3888IndustryMarket
7 Day-1.6%4.1%2.2%
30 Day33.0%17.8%8.4%
90 Day42.8%43.7%15.6%
1 Year119.0%118.2%168.6%167.4%11.4%7.2%
3 Year105.5%103.8%224.9%221.3%-3.4%-13.5%
5 Year284.0%276.3%366.2%355.5%65.4%37.4%

Long-Term Price Volatility Vs. Market

How volatile is Kingsoft's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kingsoft undervalued compared to its fair value and its price relative to the market?

692.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3888 (HK$57.05) is trading above our estimate of fair value (HK$30.96)

Significantly Below Fair Value: 3888 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3888 is poor value based on its PE Ratio (692.6x) compared to the HK Software industry average (22.2x).

PE vs Market: 3888 is poor value based on its PE Ratio (692.6x) compared to the Hong Kong market (11.5x).


Price to Earnings Growth Ratio

PEG Ratio: 3888's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 3888 is overvalued based on its PB Ratio (2.6x) compared to the HK Software industry average (0.9x).


Next Steps

Future Growth

How is Kingsoft forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-62.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3888's earnings are forecast to decline over the next 3 years (-62% per year).

Earnings vs Market: 3888's earnings are forecast to decline over the next 3 years (-62% per year).

High Growth Earnings: 3888's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 3888's revenue (15% per year) is forecast to grow faster than the Hong Kong market (14.1% per year).

High Growth Revenue: 3888's revenue (15% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3888's Return on Equity is forecast to be low in 3 years time (7.5%).


Next Steps

Past Performance

How has Kingsoft performed over the past 5 years?

-28.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3888 has high quality earnings.

Growing Profit Margin: 3888 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 3888's earnings have declined by 28.2% per year over the past 5 years.

Accelerating Growth: 3888 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 3888 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (-7.4%).


Return on Equity

High ROE: 3888's Return on Equity (0.3%) is considered low.


Next Steps

Financial Health

How is Kingsoft's financial position?


Financial Position Analysis

Short Term Liabilities: 3888's short term assets (CN¥17.6B) exceed its short term liabilities (CN¥2.6B).

Long Term Liabilities: 3888's short term assets (CN¥17.6B) exceed its long term liabilities (CN¥3.7B).


Debt to Equity History and Analysis

Debt Level: 3888's debt to equity ratio (8.1%) is considered satisfactory.

Reducing Debt: 3888's debt to equity ratio has reduced from 29.1% to 8.1% over the past 5 years.

Debt Coverage: 3888's debt is well covered by operating cash flow (109.2%).

Interest Coverage: 3888 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Kingsoft current dividend yield, its reliability and sustainability?

0.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3888's dividend (0.17%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.13%).

High Dividend: 3888's dividend (0.17%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.66%).


Stability and Growth of Payments

Stable Dividend: 3888 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 3888 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 3888 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 3888's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Tao Zou (45 yo)

4.08yrs

Tenure

CN¥1,853,000

Compensation

Mr. Tao Zou has been Vice Chairman of the Board at Kingsoft Cloud Holdings Limited since December 2018 and its Director since December 2016. He has been the Chief Executive Officer and Executive Director o...


CEO Compensation Analysis

Compensation vs Market: Tao's total compensation ($USD285.97K) is below average for companies of similar size in the Hong Kong market ($USD833.28K).

Compensation vs Earnings: Tao's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jun Lei
Co-Founder & Chairman9.5yrsCN¥394.00k12.79%
CN¥ 10.0b
Tao Zou
CEO & Executive Director4.08yrsCN¥1.85m0.086%
CN¥ 67.2m
Yuk Keung Ng
CFO, Joint Company Secretary & Executive Director7.83yrsCN¥1.71m0.0013%
CN¥ 1.0m
Francie Lu
IR Directorno datano datano data
Wei Liu
Senior Vice President8.75yrsno datano data
Wai Wai Kwok
Senior Vice President2.83yrsno datano data
Weiwei Guo
Senior Vice President0.75yrno datano data
Hongyu LV
Joint Company Secretary2.17yrsno datano data
Quanguo Wang
Vice President18yrsno datano data

4.1yrs

Average Tenure

44yo

Average Age

Experienced Management: 3888's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jun Lei
Co-Founder & Chairman9.5yrsCN¥394.00k12.79%
CN¥ 10.0b
Tao Zou
CEO & Executive Director4.08yrsCN¥1.85m0.086%
CN¥ 67.2m
Yuk Keung Ng
CFO, Joint Company Secretary & Executive Director7.83yrsCN¥1.71m0.0013%
CN¥ 1.0m
Chi Ping Lau
Non-Executive Director9.5yrsno datano data
Pak Kwan Kau
Non-Executive Director9.25yrsCN¥379.00k7.32%
CN¥ 5.7b
Yuen Kwan Tang
Independent Non-Executive Director7.67yrsCN¥379.00kno data
Shun Wong
Independent Non-Executive Director6.5yrsCN¥379.00kno data
Wenjie Wu
Independent Non-Executive Director7.83yrsCN¥380.00kno data

8.5yrs

Average Tenure

53yo

Average Age

Experienced Board: 3888's board of directors are considered experienced (8.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 3888 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kingsoft Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kingsoft Corporation Limited
  • Ticker: 3888
  • Exchange: SEHK
  • Founded: 1988
  • Industry: Application Software
  • Sector: Software
  • Market Cap: HK$77.989b
  • Shares outstanding: 1.37b
  • Website: https://www.kingsoft.com

Number of Employees


Location

  • Kingsoft Corporation Limited
  • Kingsoft Tower
  • No. 33 Xiaoying West Road
  • Beijing
  • Beijing Province
  • 100085
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3888SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2007
3K1DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2007
KSFT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2007
3888SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2007
3888SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2007

Biography

Kingsoft Corporation Limited, an investment holding company, operates as a software and Internet service company in Mainland China, Hong Kong, and internationally. It operates through three segments: Enter...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 10:13
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.