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.
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