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
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 62% per year for the next 3 years
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
| 3888 | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.6% | 4.1% | 2.2% |
| 30 Day | 33.0% | 17.8% | 8.4% |
| 90 Day | 42.8% | 43.7% | 15.6% |
| 1 Year | 119.0%118.2% | 168.6%167.4% | 11.4%7.2% |
| 3 Year | 105.5%103.8% | 224.9%221.3% | -3.4%-13.5% |
| 5 Year | 284.0%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
2 weeks ago | Simply Wall St
Kingsoft (HKG:3888) Could Easily Take On More Debt1 month ago | Simply Wall St
A Quick Analysis On Kingsoft's (HKG:3888) CEO Salary1 month ago | Simply Wall St
Kingsoft Corporation Limited Just Recorded A 128% EPS Beat: Here's What Analysts Are Forecasting NextValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Chairman | 9.5yrs | CN¥394.00k | 12.79% CN¥ 10.0b | |
| CEO & Executive Director | 4.08yrs | CN¥1.85m | 0.086% CN¥ 67.2m | |
| CFO, Joint Company Secretary & Executive Director | 7.83yrs | CN¥1.71m | 0.0013% CN¥ 1.0m | |
| IR Director | no data | no data | no data | |
| Senior Vice President | 8.75yrs | no data | no data | |
| Senior Vice President | 2.83yrs | no data | no data | |
| Senior Vice President | 0.75yr | no data | no data | |
| Joint Company Secretary | 2.17yrs | no data | no data | |
| Vice President | 18yrs | no data | no data |
4.1yrs
Average Tenure
44yo
Average Age
Experienced Management: 3888's management team is considered experienced (4.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Chairman | 9.5yrs | CN¥394.00k | 12.79% CN¥ 10.0b | |
| CEO & Executive Director | 4.08yrs | CN¥1.85m | 0.086% CN¥ 67.2m | |
| CFO, Joint Company Secretary & Executive Director | 7.83yrs | CN¥1.71m | 0.0013% CN¥ 1.0m | |
| Non-Executive Director | 9.5yrs | no data | no data | |
| Non-Executive Director | 9.25yrs | CN¥379.00k | 7.32% CN¥ 5.7b | |
| Independent Non-Executive Director | 7.67yrs | CN¥379.00k | no data | |
| Independent Non-Executive Director | 6.5yrs | CN¥379.00k | no data | |
| Independent Non-Executive Director | 7.83yrs | CN¥380.00k | no 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
| 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: Enter...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 10:13 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| 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.