Movement Alert|KINGSOFT CLOUD Declines 5.06% in Regular Trading, Under Pressure Ahead of Q2 Earnings Review

Market Focus
Aug 18

On August 18, KINGSOFT CLOUD fell 5.06% in regular trading to HK$5.735, with turnover of HK$179 million. The decline comes one day before the company's board is scheduled to review and release its unaudited Q2 and interim results for the period ending June 30, with a management earnings call set for August 19.

The stock had previously rallied sharply, surging nearly 20% in a single session in mid-July after Morgan Stanley initiated coverage with an Overweight rating and a US$15 target price, citing its transformation into a pure AI cloud investment vehicle. UBS also expressed a positive outlook on the company's AI model prospects. However, the company remains unprofitable with a static PE ratio of -28.6 and annual gross margin of approximately 15.73%. Despite strong operating cash flow of RMB 3.8 billion in the prior fiscal year, investors appear to be reducing exposure ahead of the earnings release.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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