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Kingsoft Corporation (3888) Fair Value & Analysis

Communication Services · HK · Market cap HK$30.5B

KC Kingsoft Corporation 3888 · HK
PriceHK$26.54
Fair ValueHK$43.99
Upside+65.8%
Quality63/100
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Mixed Growth
Highly profitable · 28.8% net margin
Low debt · generates free cash flow
Ranks above peers (10/15)
Moderate moat 60/100
Evidence: Medium Range HK$36.09 – HK$50.82 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated today

Fair value updated Aug 13, 2026, revised from HK$34.34 to HK$43.99 (+28.1%) since Aug 6, 2026. Share price +10.9% over the past month.

A solid business, screening 66% undervalued on our models.

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.
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Price vs Fair Value (5 years)

HK$58.18 HK$17.99 Fair Value HK$43.99 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 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$26.54 price screens below the HK$43.99 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Kingsoft Corporation (3888) currently trades at HK$26.54, while our model-based Fair Value estimate is HK$43.99, implying the stock looks roughly 65.8% undervalued today. The Quality Score stands at 63/100 (solid quality), in the Communication Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Kingsoft Corporation 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 Aug 13, 2026

Our scenario range runs from HK$36.09 (bear case) to HK$50.82 (bull case); at HK$26.54, 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 30% below its 52-week high and 30% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at -25% fair-value upside, at 66%, 3888 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

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
Growth DCF HK$40.51 HK$65.71 HK$109.65 80
Residual Income HK$15.79 HK$16.80 HK$18.76 76
Rev-Margin DCF HK$31.37 HK$42.51 HK$58.46 74
All 26 models by family
DCF Models
FCF DCF HK$41.36 HK$60.78 HK$111.97 38
Owner Earnings HK$37.90 HK$61.92 HK$109.78 31
5Y Revenue Exit HK$31.37 HK$42.48 HK$58.98 39
5Y EBITDA Exit HK$35.90 HK$52.64 HK$76.23 41
5Y P/E Exit HK$45.02 HK$73.96 HK$110.07 38
10Y Revenue Exit HK$33.94 HK$46.70 HK$65.43 36
10Y EBITDA Exit HK$37.47 HK$54.72 HK$83.90 37
10Y P/E Exit HK$43.78 HK$70.89 HK$115.19 35
Earnings-Based
Graham-Dodd HK$10.05 HK$63.32 HK$88.45 54
Lynch FV HK$18.27 HK$26.10 HK$33.93 50
PEG = 1.0 HK$18.27 HK$26.10 HK$33.93 46
EPV HK$24.32 HK$25.59 HK$26.71 59
Dividend Discount
Gordon GGM HK$1.26 HK$2.61 HK$4.14 70
DDM Multi-Stage HK$1.26 HK$2.20 HK$2.74 61
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 53
EV/EBITDA HK$34.30 HK$40.18 HK$46.06 54
EV/Revenue HK$26.92 HK$31.31 HK$35.71 43
Asset-Based
NCAV (Graham) HK$9.60 HK$12.87 HK$19.20 50
Growth DCF
Growth DCF HK$40.51 HK$65.71 HK$109.65 80
Rev-Margin DCF HK$31.37 HK$42.51 HK$58.46 74
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 68

Widest divergence: DCF Models (HK$54.72) versus Dividend Discount (HK$2.20). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$9.8B
Revenue growth (YoY) +3.4%
Net margin 28.8%
Return on equity 14.2%
Free cash flow HK$2.3B FY2025
P/E ratio 13.5 as of Jul 2, 2026
More key figures
Operating margin 16.4%
EPS (TTM) HK$2.03
EPS growth (YoY) +276%
Net cash HK$22.6B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 63/100

Of which business quality 64 · Market factors (momentum, volatility) 40

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 33
Price trend over the last 3–12 months (market factor)
52W Momentum 22
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.

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 Corporation reported revenue of HK$9.7B in FY2025 versus HK$6.4B in FY2021, a compound +11.0%/yr. Reported net income was HK$2.0B 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. 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. 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. 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%
Revenue +11.0%/yr
FY21 HK$6.4B
FY22 HK$7.6B
FY23 HK$8.5B
FY24 HK$10.3B
FY25 HK$9.7B
Net income +50.1%/yr
FY21 HK$395M
FY22 −HK$6.0B
FY23 HK$483M
FY24 HK$1.6B
FY25 HK$2.0B
Character of growth · EPS growth decomposed (2014-2025) +8.8 % p.a.
Revenue per share +7.5 pp

of which total revenue +8.2 pp · buybacks/dilution −0.7 pp

EBIT margin +7.3 pp
Tax rate +0.0 pp
Residual (interest, one-offs) −6.0 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Kingsoft Corporation · Fair Value
HK$43.99 +66%Fair Value
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Cite: Fair Value Calculator (2026). "Kingsoft Corporation 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 · 155 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 +66% · 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) 0.0% · 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

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.

VALUE 100 · sector 16
FUTURE 17 · sector 7
PAST 57 · sector 9
HEALTH 100 · sector 99
DIVIDEND 0 · sector 42

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Electronic Gaming & Multimedia stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
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Electronic Arts Inc EA $209.70 $76.57 -63%
Take-Two Interactive Software, Inc TTWO $243.00 $60.20 -75%
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Zhejiang Century Huatong Group 002602 ¥14.29 ¥14.68 +3%
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%
37 Interactive Entertainment Network Technology Group 002555 ¥19.21 ¥22.29 +16%
Kingnet Network Co 002517 ¥17.36 ¥12.86 -26%

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Frequently asked questions

Is Kingsoft Corporation (3888) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$43.99 versus a price of HK$26.54, about +66% (undervalued).
What is the fair value of 3888?
Our model-based fair value for Kingsoft Corporation is HK$43.99 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$26.54.
What is the quality score of 3888?
Kingsoft Corporation 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 Corporation (3888)?
Kingsoft Corporation reported trailing-twelve-month revenue of about HK$9.8B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 3888?
The net profit margin of Kingsoft Corporation is about 28.8%, meaning it keeps roughly 28.8% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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