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Kingsoft Corp Ltd (3888) Fair Value & Analysis

Communication Services · HK · Market cap HK$30.5B (≈ $3.9B) · ISIN KYG5264Y1089

What is Kingsoft Corp Ltd really worth?

KC Kingsoft Corp Ltd 3888 · HK
PriceHK$25.60
Fair ValueHK$43.99
Upside+71.8%
Quality63/100

A solid business, trading 42% below our fair value of HK$43.99.

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Strengths

✓Highly profitable · 28.8% net margin
✓Low debt · generates free cash flow
✓Ranks above peers (10/15)

Risks

!Mixed Growth (revenue 5y +11.6 %/yr)
!Moderate moat 60/100
!Weak on future: 17 out of 100
!Weak on dividend: 12 out of 100
Evidence: High Range HK$36.09 – HK$50.82

Fair value as of: Sep 5, 2026

From 26 valuation models · updated today

Share price −10.6% over the past month.

What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case (HK$36.09). The market is more pessimistic than our downside scenario.
  • Solid quality (63/100) at a price below fair value, the discount is the argument here, not the business quality.

Price vs Fair Value (5 years)

HK$58.18 HK$17.99 Fair Value HK$43.99 Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 5, 2026.

How to read this chart

60‑month range HK$17.99 – HK$58.18 · fair‑value band HK$36.09 – HK$50.82 · the HK$25.60 price screens below the HK$43.99 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 5, 2026.

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Analysis

Kingsoft Corp Ltd (3888) currently trades at HK$25.60, while our model-based Fair Value estimate is HK$43.99, implying the stock looks roughly 41.8% undervalued today. The Quality Score stands at 63/100 (solid quality), in the Communication Services sector. Bull case: the DCF Models group reads highest at a median of HK$54.72 per share, and 19 of the 26 models we run sit above the HK$25.60 price. Bear case: the Asset-Based group reads lowest at HK$12.87, and 7 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Kingsoft Corp Ltd generated revenue of HK$9.8B at a net margin of 28.8%. Revenue grew 3.4% year over year. It earns a return on equity of 14.2%. The balance sheet holds a net cash position of HK$22.6B. Fundamentals as of Sep 5, 2026

Our scenario range runs from HK$36.09 (bear case) to HK$50.82 (bull case); at HK$25.60, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 33% below its 52-week high and 26% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at −46% fair-value upside, at 72%, 3888 screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly HK$1.38 per share, which is 3.1 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence HK$41.36 HK$60.78 HK$111.97 78
Growth DCF HK$40.51 HK$65.71 HK$109.65 76
Residual Income HK$15.79 HK$16.80 HK$18.76 76
All 26 models by family
DCF Models
FCF DCF best evidence HK$41.36 HK$60.78 HK$111.97 78
Owner Earnings HK$37.90 HK$61.92 HK$109.78 74
5Y Revenue Exit HK$31.37 HK$42.48 HK$58.98 73
5Y EBITDA Exit HK$35.90 HK$52.64 HK$76.23 75
5Y P/E Exit HK$45.02 HK$73.96 HK$110.07 70
10Y Revenue Exit HK$33.94 HK$46.70 HK$65.43 67
10Y EBITDA Exit HK$37.47 HK$54.72 HK$83.90 68
10Y P/E Exit HK$43.78 HK$70.89 HK$115.19 62
Earnings-Based
Graham-Dodd HK$10.05 HK$63.32 HK$88.45 63
Lynch FV HK$18.27 HK$26.10 HK$33.93 61
PEG = 1.0 HK$18.27 HK$26.10 HK$33.93 57
EPV HK$24.32 HK$25.59 HK$26.71 74
Dividend Discount
Gordon GGM HK$1.26 HK$2.61 HK$4.14 66
DDM Multi-Stage HK$1.26 HK$2.20 HK$2.74 67
Multiples
P/E Multiple HK$31.03 HK$41.38 HK$51.72 63
P/S Multiple HK$18.84 HK$25.12 HK$31.40 58
P/B Multiple HK$18.84 HK$25.12 HK$31.40 55
EV/EBIT HK$36.95 HK$43.71 HK$50.47 66
EV/EBITDA HK$34.30 HK$40.18 HK$46.06 67
EV/Revenue HK$26.92 HK$31.31 HK$35.71 54
Asset-Based
NCAV (Graham) HK$9.60 HK$12.87 HK$19.20 54
Growth DCF
Growth DCF HK$40.51 HK$65.71 HK$109.65 76
Rev-Margin DCF HK$31.37 HK$42.51 HK$58.46 73
Economic Profit
Residual Income HK$15.79 HK$16.80 HK$18.76 76
ROIC Compounder HK$25.81 HK$29.38 HK$34.15 72
Growth Earnings
Growth-Adj P/E HK$29.93 HK$42.75 HK$55.58 67

Widest divergence: DCF Models (HK$54.72) versus Dividend Discount (HK$2.20). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 13.5 as of Jul 2, 2026
P/S ratio 2.79 P/E × margin
EPS (TTM) HK$2.03 price ÷ EPS = P/E 13.5
Dividend yield 0.6% payout 7.7%
Net margin 20.7% FY2025
Return on equity 14.2% TTM
More key figures
Profitability
Return on assets (EBIT) 5.3% avg 5y
Operating margin 16.4% TTM
Growth
Revenue (TTM) HK$9.8B TTM
Revenue growth (YoY) +3.4% 3y avg +8.2%
EPS growth (YoY) +276%
Balance sheet & cash flow
Free cash flow HK$2.3B FY2025
Net cash HK$22.6B FY2025

Figures from reported company fundamentals · as of Sep 5, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 63/100

Of which business quality 64 · Market factors (momentum, volatility) 42

Profitability 42
Margins and returns on capital today
Quality Growth 26
Are margins and returns improving?
Cashflow 81
Earnings quality: real cash, not paper profit
Fin. Strength 92
Balance sheet, leverage, solvency risk
Investment 69
Disciplined investing over empire-building
Low Volatility 67
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 17
Distance to the 52-week high (market factor)
Net Issuance 64
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Kingsoft Corporation Limited engages in the entertainment and office software and services businesses in Mainland China, Hong Kong, and internationally. The company operates through two segments: Office Software and Services, and Entertainment Software and Others.

Full company description

Kingsoft Corporation Limited engages in the entertainment and office software and services businesses in Mainland China, Hong Kong, and internationally. The company operates through two segments: Office Software and Services, and Entertainment Software and Others. It involved in the research and development, operation, and distribution of games; the provision of PC games and mobile games services; and design, research and development, sale, and marketing of office software products and services of WPS Office, WPS 365, WPS AI. The company also engages in the research and development of online games; marketing and operation of SMS, and wireless service of online games and application software; research and development, operation, and sale of office application software; marketing and operation of entertainment software products; and research, development, and distribution of consumer application software. Kingsoft Corporation Limited was founded in 1988 and is headquartered in Tsim Sha Tsui, Hong Kong.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Kingsoft Corp Ltd reported revenue of 9.7B CNY in FY2025 versus 6.4B CNY in FY2021, a compound +11.0%/yr. Reported net income was 2.0B CNY in FY2025, compounding +50.1%/yr from FY2021.

Growth Quality 89/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
HK$9.7B
Latest YoY
−6.2%
Avg. revenue growth/yr (3Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.2%
Avg. revenue growth/yr (5Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.6%
Avg. revenue growth/yr (21Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+23.7%
Value creation/yr (5Y) ⓘEarnings growth per share (CAGR 5 years, EBIT basis) plus dividend yield: value created per share and year.
+1.7% (1.1 + 0.6)
Revenue +11.0%/yr
FY21 6.4B CNY
FY22 7.6B CNY
FY23 8.5B CNY
FY24 10.3B CNY
FY25 9.7B CNY
Net income +50.1%/yr
FY21 395M CNY
FY22 −6.0B CNY
FY23 483M CNY
FY24 1.6B CNY
FY25 2.0B CNY
Character of growth · EPS growth decomposed (2014-2025) +8.8 % p.a.
Revenue per share +7.5 %

of which total revenue +8.2 % · buybacks/dilution −0.6 %

EBIT margin +7.3 %
Tax rate +0.0 %
Residual (interest, one-offs) −5.7 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Kingsoft Corp Ltd · Fair Value
HK$43.99 +42%Fair Value
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Cite: Fair Value Calculator (2026). "Kingsoft Corp Ltd Fair Value". https://www.fairvalue-calculator.com/stock/3888

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Electronic Gaming & Multimedia · 150 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 63 · Above median
Fair Value upside +72% · Top 25%
Return on equity (TTM) 14% · Above median
Return on assets 2% · Below median
Net margin (TTM) 29% · Top 25%
Operating margin (TTM) 16% · Above median
Revenue growth 3% · Above median
Dividend yield (TTM) 0.6% · Bottom 25%

Valuation Multiples vs Electronic Gaming & Multimedia median · lower = cheaper

P/E (TTM) 13.5× · Cheaper than median
P/B 1.17× · Pricier than median
P/S (TTM) 3.13× · Pricier than 75% of peers
P/FCF 1.7× · Pricier than median
EV/EBITDA 5.3× · Cheaper than median
PEG 0.74× · Cheaper than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 16
FUTURE17 · sector 6
PAST57 · sector 18
HEALTH100 · sector 100
DIVIDEND12 · sector 55

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Electronic Gaming & Multimedia stocks, each showing price versus our Fair Value estimate (as of Sep 5, 2026).

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Take-Two Interactive Software, Inc TTWO $233.00 $60.20 −74%
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Zhejiang Century Huatong Group 002602 ¥13.90 ¥14.68 +6%
KRAFTON, Inc 259960 234,500 KRW 356,218 KRW +52%
Giant Network Group 002558 ¥28.57 ¥15.50 −46%
International Games System Co 3293 762.00 TWD 568.16 TWD −25%
CD Projekt S.A CDR 234.40 PLN 64.48 PLN −72%

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Frequently asked questions

Is Kingsoft Corp Ltd (3888) overvalued or undervalued?
As of Sep 5, 2026, our model estimates a fair value of HK$43.99 versus a price of HK$25.60, about +72% upside (undervalued).
What is the fair value of 3888?
Our model-based fair value for Kingsoft Corp Ltd is HK$43.99 (as of Sep 5, 2026), built from audited fundamentals. The current price: HK$25.60.
What is the quality score of 3888?
Kingsoft Corp Ltd has a Quality Score of 63/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Kingsoft Corp Ltd (3888)?
Kingsoft Corp Ltd reported trailing-twelve-month revenue of about HK$9.8B (latest available figure, as of Sep 5, 2026).
What is the net profit margin of 3888?
The net profit margin of Kingsoft Corp Ltd is about 28.8%, meaning it keeps roughly 28.8% of revenue as net income. Based on the latest reported figures.
Does Kingsoft Corp Ltd pay a dividend?
Kingsoft Corp Ltd currently shows a dividend yield of about 0.61% relative to its recent price (as of Sep 5, 2026).
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