CICC reported that kingsoft cloud's revenue for the third quarter increased by 16% year-on-year to 1.89 billion yuan, in line with market expectations; adjusted EBITDA reached 0.185 billion yuan, significantly exceeding market expectations, thanks to effective cost and expense control. Additionally, the company disclosed a framework agreement for related transactions with kingsoft and Xiaomi. According to the announcement, the revenue ceiling from kingsoft and Xiaomi is expected to total approximately 11.3 billion yuan from 2025 to 2027. The report indicated that considering the AI business revenue contribution from kingsoft cloud exceeded expectations, revenue forecasts for 2024 and 2025 were raised by 2% and 1.7% to 7.65 billion yuan and 8.42 billion yuan, respectively; given that revenue growth and operational leverage release are faster than expected, adjusted EBITDA forecasts were raised by 15.8% and 26.6% to 0.552 billion yuan and 1.18 billion yuan. The bank maintains an "outperform the industry" rating; considering the company's business structure optimization and more optimistic growth and profit prospects, the target price was raised by 8% to $6.50.