Executive Summary
Kingsoft Corporation Limited, an investment holding company, operates as a software and Internet service company in Mainland China, Hong Kong, and internationally.
Rewards
Risk Analysis
Snowflake Analysis
High growth potential with adequate balance sheet.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
15.0%
3888
8.1%
HK Software
7.4%
HK Market
1 Year Return
20.2%
3888
4.2%
HK Software
-22.7%
HK Market
Return vs Industry: 3888 exceeded the Hong Kong Software industry which returned 5% over the past year.
Return vs Market: 3888 exceeded the Hong Kong Market which returned -20.3% over the past year.
Shareholder returns
| 3888 | Industry | Market | |
|---|---|---|---|
| 7 Day | 15.0% | 8.1% | 7.4% |
| 30 Day | 0.4% | -2.9% | -11.2% |
| 90 Day | 25.2% | 20.0% | -17.3% |
| 1 Year | 20.2%20.2% | 4.5%4.2% | -19.9%-22.7% |
| 3 Year | 19.3%18.2% | 31.1%29.7% | -5.3%-14.8% |
| 5 Year | 8.7%6.5% | 5.5%0.1% | -8.7%-23.4% |
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
4 days ago | Simply Wall St
Kingsoft Corporation Limited (HKG:3888) Just Reported And Analysts Have Been Lifting Their Price Targets6 days ago | Simply Wall St
Introducing Kingsoft (HKG:3888), A Stock That Climbed 25% In The Last Year3 weeks ago | Simply Wall St
Does Kingsoft Corporation Limited's (HKG:3888) CEO Pay Compare Well With Peers?Valuation
Is Kingsoft undervalued compared to its fair value and its price relative to the market?
2.57x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: 3888 (HK$24.85) is trading above our estimate of fair value (HK$17.39)
Significantly Below Fair Value: 3888 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 3888 is unprofitable, so we can't compare its PE Ratio to the Software industry average.
PE vs Market: 3888 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 3888's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 3888 is overvalued based on its PB Ratio (2.5x) compared to the HK Software industry average (1.1x).
Next Steps
Future Growth
How is Kingsoft forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
96.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 3888 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).
Earnings vs Market: 3888 is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: 3888's is expected to become profitable in the next 3 years.
Revenue vs Market: 3888's revenue (28.6% per year) is forecast to grow faster than the Hong Kong market (9.9% per year).
High Growth Revenue: 3888's revenue (28.6% per year) is forecast to grow faster 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 (8.1%).
Next Steps
Past Performance
How has Kingsoft performed over the past 5 years?
-40.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 3888 is currently unprofitable.
Growing Profit Margin: 3888 is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: 3888 is unprofitable, and losses have increased over the past 5 years at a rate of -40.5% per year.
Accelerating Growth: Unable to compare 3888's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: 3888 is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (11.7%).
Return on Equity
High ROE: 3888 has a negative Return on Equity (-13.34%), as it is currently unprofitable.
Next Steps
Financial Health
How is Kingsoft's financial position?
Financial Position Analysis
Short Term Liabilities: 3888's short term assets (CN¥17.3B) exceed its short term liabilities (CN¥4.9B).
Long Term Liabilities: 3888's short term assets (CN¥17.3B) exceed its long term liabilities (CN¥3.9B).
Debt to Equity History and Analysis
Debt Level: 3888's debt to equity ratio (27.4%) is considered satisfactory.
Reducing Debt: 3888's debt to equity ratio has reduced from 45.9% to 27.4% over the past 5 years.
Balance Sheet
Inventory Level: 3888 has a low level of unsold assets or inventory.
Debt Coverage by Assets: 3888's debt is covered by short term assets (assets are 4x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: 3888 has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: 3888 has been profitable on average in the past, therefore cash runway is not a concern.
Next Steps
Dividend
What is Kingsoft's current dividend yield, its reliability and sustainability?
0.39%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 3888's dividend (0.4%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.67%).
High Dividend: 3888's dividend (0.4%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.29%).
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?
3.3yrs
Average management tenure
CEO
Tao Zou (44yo)
3.25s
Tenure
CN¥1,820,000
Compensation
Mr. Tao Zou has been the Chief Executive Officer and Executive Director of Kingsoft Corporation Limited since December 1, 2016 and August 25, 2009 respectively and also served as its Senior Vice President ...
CEO Compensation Analysis
Compensation vs Market: Tao's total compensation ($USD256.49K) is below average for companies of similar size in the Hong Kong market ($USD488.81K).
Compensation vs Earnings: Tao's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Chairman | 8.67yrs | CN¥357.00k | 12.8% CN¥4.3b | |
| CEO & Executive Director | 3.25yrs | CN¥1.82m | 0.12% CN¥40.0m | |
| CFO, Joint Company Secretary & Executive Director | 7yrs | CN¥1.91m | 0.078% CN¥26.5m | |
| IR Director | no data | no data | no data | |
| Senior Vice President | 7.83yrs | no data | no data | |
| Senior Vice President | 3.25yrs | no data | no data | |
| Senior Vice President | 2yrs | no data | no data | |
| Joint Company Secretary | 1.25yrs | no data | no data | |
| Vice President | 17.17yrs | no data | no data | |
| Consultant | 3.25yrs | no data | no data |
3.3yrs
Average Tenure
44yo
Average Age
Experienced Management: 3888's management team is considered experienced (3.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Chairman | 8.67yrs | CN¥357.00k | 12.8% CN¥4.3b | |
| CEO & Executive Director | 3.25yrs | CN¥1.82m | 0.12% CN¥40.0m | |
| CFO, Joint Company Secretary & Executive Director | 7yrs | CN¥1.91m | 0.078% CN¥26.5m | |
| Non-Executive Director | 8.67yrs | no data | no data | |
| Non-Executive Director | 8.42yrs | CN¥325.00k | 7.54% CN¥2.6b | |
| Independent Non-Executive Director | 6.83yrs | CN¥325.00k | no data | |
| Independent Non-Executive Director | 5.67yrs | CN¥325.00k | no data | |
| Independent Non-Executive Director | 7yrs | CN¥352.00k | no data |
7.7yrs
Average Tenure
52yo
Average Age
Experienced Board: 3888's board of directors are considered experienced (7.7 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$33.934b
- Shares outstanding: 1.37b
- Website: https://www.kingsoft.com
Number of Employees
Location
- Kingsoft Corporation Limited
- Kingsoft Tower
- No. 33 Xiaoying West Road
- Beijing
- 100085
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 3888 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Oct 2007 |
| 3K1 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Oct 2007 |
| KSFT.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Oct 2007 |
| 3888 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Oct 2007 |
| 3888 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Oct 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: Entertainment Software; Cloud Services; and Office Software and Services and Others. The Entertainment Software segment engages in the research and development of games; and provision of online games, mobile games, and casual game services. The Cloud Services segment provides cloud storage and cloud computation services. The Office Software and Services and Others segment designs, researches and develops, sells, and markets office software products and services of WPS Office. The company also engages in the operation and distribution of games; marketing and distribution of application software; research and development of application technology; research and development of software; marketing and operation of SMS, and wireless service of online games and application software; sale and operation of office application software; marketing and operation of entertainment software products; and research, development, and distribution of consumer application software. Kingsoft Corporation Limited was founded in 1988 and is headquartered in Beijing, the People’s Republic of China.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 13:25 |
| End of Day Share Price | 2020/03/31 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.