<div id="readability-page-1"><div>KINGSOFT CLOUD (03896.HK) -0.480 (-7.080%) Short selling $16.64M; Ratio 3.461% opened 1.33% higher today, reaching a peak of HKD6.96 before reversing to a trough of HKD6.24. It last traded at HKD6.29, down 7.23%, with turnover of 79.9531 million shares involving HKD518 million.KINGSOFT CLOUD announced its results for 1Q26 after market close on May 27. Revenue increased 37% YoY to RMB2.7 billion, mainly driven by revenue growth from XIAOMI-W (01810.HK) -0.680 (-2.394%) Short selling $2.32B; Ratio 28.093% , the Kingsoft ecosystem and AI-related customers, as well as deeper penetration into enterprise cloud clients.--------------------------------------------------------------------------------------------- Nomura said in a report that KINGSOFT CLOUDs gross margin for 1Q declined 3.4 ppts YoY to 12.8%, primarily due to higher server costs, AI business expansion and upfront costs incurred for specific clients. The company recorded a non-GAAP net loss of RMB237.1 million during the period, compared with a net loss of RMB94.6 million in 4Q25. Nomura attributed the widening loss mainly to the lower gross margin.Nomura noted that capital expenditure and total leased assets reached RMB3 billion in 1Q, with management expecting continued investment in 2026 to further expand operations. The broker expects AI demand from core customers to maintain solid growth in FY2026, but warned that the downward trajectory of gross margin remains a key risk. Nomura maintained its Buy rating on KINGSOFT CLOUD with an unchanged TP of HKD8.5.--------------------------------------------------------------------------------------------- BofAS said in a research report that KINGSOFT CLOUDs first-quarter results were in line with expectations. Revenue rose 37% YoY to RMB2.7 billion, 4% and 3% above market consensus and the brokers forecasts, respectively, mainly driven by strong public cloud revenue growth. Adjusted EBITDA surged 135% YoY to RMB748 million, 4% above consensus, while non-GAAP net loss widened 24% YoY to RMB237 million. Gross margin for the quarter fell 3.4 ppts YoY to 12.8%, mainly due to seasonal revenue mix changes and temporarily low server utilization. The broker expects gross margin to recover starting from 2Q.Supported by robust public cloud growth prospects underpinned by AI demand, BofAS raised its revenue forecasts for FY2026FY2028 by 2% to 4%, while lowering its FY2026 adjusted non-GAAP net profit forecast due to reduced gross margin assumptions. It lifted the TP for KINGSOFT CLOUD (03896.HK) -0.480 (-7.080%) Short selling $16.64M; Ratio 3.461% from HKD10.8 to HKD10.9, and raised the US share TP for Kingsoft Cloud Holdings Limited (KC.US) from USD20.8 to USD21.0.----------------------------------------------------------------------------------------------------------------- Jefferies said in a report that KINGSOFT CLOUDs total revenue for 1Q increased 37.2% YoY to RMB2.7 billion, exceeding market consensus and the brokers forecasts by 4.6% and 2.6%, respectively. Among them, public cloud service revenue rose 47.5% YoY to RMB2 billion, while enterprise cloud service revenue grew 14.7% YoY to RMB707 million. Non-GAAP gross profit reached RMB351.4 million, with a non-GAAP gross margin of 13%. Non-GAAP EBITDA amounted to RMB747.5 million, with an adjusted EBITDA margin of 27.6%. Total AI billings surged 90% YoY to approximately RMB1 billion, accounting for more than half of public cloud revenue for the first time. Management said on the earnings call that revenue from XIAOMI-W and the Kingsoft ecosystem increased 68.9% YoY to RMB838 million, representing 31% of total revenue. As XIAOMI-W steps up investment in its Human x Car x Home ecosystem and AI initiatives, more business opportunities are expected for KINGSOFT CLOUD. The company plans to raise the annual caps for continuing connected transactions with Xiaomi and Kingsoft under the 20252027 framework agreement to RMB14.2 billion. In addition, public cloud Token services performed strongly, with April revenue surging to 53 times that of January, and delivering higher gross margins than traditional cloud computing services.Jefferies estimated that 2Q total revenue will grow 13% QoQ and 30% YoY to RMB3.1 billion, mainly driven by increased AI revenue contribution from XIAOMI-W. Gross margin is expected to improve QoQ to above 15%, while adjusted EBITDA margin is forecast to rise QoQ to around 30%. The broker maintained its Buy rating and USD19 TP on the US shares of KINGSOFT CLOUD. (ad/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-27 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)</div></div>

03896

CLOU

KINGSOFT CLOUDshares fell nearly 7% after Nomura reported a decline in 1Q gross margin to 12.8%, citing higher server costs and expansion expenses. Despite a 37% YoY revenue increase to RMB2.7 billion, the company recorded a non-GAAP net loss of RMB237.1 million. BofAS and Jefferies expect a recovery in gross margin in 2Q, with revenue forecasts raised due to strong AI demand. BofAS increased its target price from HKD10.8 to HKD10.9, while Jefferies maintained a USD19 target for US shares.

AASTOCKS News

KINGSOFT CLOUD

Kingsoft Cloud

Global X Cloud Computing ETF

XIAOMI-W

Nomura

Nomura Holdings, Inc.

Bank of America

Jefferies Financial

Xiaomi Corporation

XIAOMI-WR

Xiaomi HK SDR 2to1

BANK OF AMERICA CORPORATION DEP SHS REP 1/1000TH INT NON CUM PFD QQ

BANK OF AMERICA CORPORATION DEP SHS REP 1/1200TH PRF SERIES '5'

BANK OF AMERICA CORPORATION 7.25% NON-CUM PERP CONV PFD SER L

BANK OF AMERICA CORPORATION 5.875%NON CUM DEP SHS REP1/1000TH SER HH

BANK OF AMERICA CORPORATION DEP SHS REP 1/1200TH PRF SERIES '2'

BANK OF AMERICA CORPORATION 5% DEP SHS REPR 1/1000TH NON CUM PFD LL

BANK OF AMERICA CORPORATION DEP SHARES REP 1/1000TH PERP PFD SER 'E'

BANK OF AMERICA CORPORATION INCOME CAPITAL OBLIG NTS DUE 15/12/2066

BANK OF AMERICA CORPORATION 4.375% DP SH RP 1/1000TH IN NON CU PF NN

BANK OF AMERICA CORPORATION DEP SH REP 1/1200TH PRF SER 1 USD25

BANK OF AMERICA CORPORATION 5.375%DEP SHS REP 1/1000TH NON CUM SR KK

BANK OF AMERICA CORPORATION 6%NON CUM DEP SHS EACH REP 1/1000 SER GG

BANK OF AMERICA CORPORATION DEP SHS REP 1/1200 PFD SER 4 USD25

BANK OF AMERICA CORPORATION DEP SHS REP 1/1000TH NON CUM PFD SER SS

BANK OF AMERICA CORPORATION 4.125%DEP SH REP 1/1000 PFD SER PP USD25

Bank of America Corp

KINGSOFT CLOUD  Slumps Nearly 7% as Nomura Flags 1Q Gross Margin Decline as Warning Sign; BofAS and Jefferies See 2Q Recovery