Summary of Kingsoft Cloud (KC) 2Q25 Review Company Overview - Company: Kingsoft Cloud (KC) - Market Cap: $3.7 billion - Enterprise Value: $4.5 billion - Industry: China Internet Verticals Key Financial Results - 2Q25 Revenue: Rmb 2,349 million, up 24% YoY, exceeding estimates by 7% and 3% compared to consensus [15] - Non-GAAP Net Loss: Rmb (300) million, significantly worse than expectations due to higher depreciation and interest expenses [15] - Adjusted EBITDA: Rmb 406 million, up 570% YoY, beating estimates by 3% and 18% [15] - Adjusted EBITDA Margin: Increased by 1.1 percentage points QoQ to 17.3% [15] Revenue Growth Drivers - AI Cloud Revenue: Grew 39% QoQ and 124% YoY in 2Q25, contributing 31% of total revenue [15] - Xiaomi/Kingsoft Ecosystem: Revenue growth accelerated to 24% QoQ and 70% YoY, accounting for 27% of total revenue [15] - Forecast for 2H25E and 2026E: Expected revenue growth of +28% and +19% YoY, respectively, driven by AI cloud and Xiaomi partnerships [15] Financial Forecasts - Revenue Projections: - 2025E: Rmb 9,581.3 million (up from previous estimate of Rmb 9,225.2 million) - 2026E: Rmb 11,354.6 million (up from previous estimate of Rmb 10,682.6 million) [3] - EBITDA Projections: - 2025E: Rmb 2,060.0 million (up 15% from previous) - 2026E: Rmb 3,131.8 million (up 9% from previous) [3] Margin and Profitability Insights - Gross Profit Margin (GPM): Declined to 14.9% YoY due to high depreciation and data center costs [15] - Adjusted EBITDA Margin: Expected to improve to 24.2%+ by 4Q25E [29] Investment Thesis - Strengths: - High AI revenue contribution (31% in 2Q25) - Strong growth visibility from Xiaomi/Kingsoft ecosystem (45% CAGR from 2024-2027E) [32] - Risks: - Rising reliance on related parties for revenue growth - Competitive pressure in the cloud market - Potential funding challenges for capital expenditures [31] Valuation and Price Target - Target Price: Increased to US$13.5 based on DCF analysis, implying 3.4x/2.8x 2025/2026E EV/Sales and 16.2x/10.3x 2025/2026E EV/EBITDA [14] - Current Rating: Neutral, with a 2% implied downside [14] Conclusion - Kingsoft Cloud shows strong revenue growth driven by AI and partnerships, but faces challenges with rising costs and competitive pressures. The company is positioned for future growth, but investors should be cautious of its reliance on related parties and the overall market environment.
金山云_2025 年回顾_人工智能云与小米业务推动营收和 EBITDA 增长，但折旧与摊销及利息拖累净亏损；中性-Kingsoft Cloud (KC)_ 2Q25 Review_ Stronger revenue_EBITDA driven by AI cloud and Xiaomi, but D&A and interest weigh on net loss; Neutral