Intelligent Finance APP learned that Zheshang Securities released a research report stating that considering the comprehensive layout of software and hardware facilities and internal growth-driven factors, it is expected that Xiamen Xiangyu (600057.SH) will have a net profit attributable to the parent company of 1.211 billion yuan, 1.435 billion yuan, and 1.683 billion yuan from 2020 to 2022, with year-on-year increases of 9.50%, 18.46%, and 17.35%, respectively, corresponding to EPS of 0.56 yuan, 0.66 yuan, and 0.78 yuan. From a growth perspective, the company's compound annual growth rate of net profit attributable to the parent company from 2020 to 2022 is 17.90%, and the PEG of the corresponding 2021E PE is 0.52, which is significantly lower than the valuation relative to the growth. Zheshang Securities believes that the reasonable valuation of the company is around 15 times PE, the reasonable market cap of the 2021 net profit attributable to the parent company is about 21.5 billion yuan, and the relative price still has about 58% room for growth. The first coverage is given a "buy" rating.$KINGSOFT CLOUD (03896.HK)$It has increased more than 12%, with the stock price rising over two times since November. As of the time of this report, it has risen 12.15% to 4.8 Hong Kong dollars, with a transaction amount of 0.567 billion Hong Kong dollars.

On the news front, Kingsoft Cloud previously announced its third-quarter performance, with total revenue reaching 1.886 billion yuan, an increase of 16.0% year-on-year; gross profit was 0.3034 billion yuan, an increase of 54.6% year-on-year; non-GAAP EBITDA was approximately 0.185 billion yuan, turning profit from loss year-on-year. The announcement stated that the year-on-year revenue increase was mainly due to the revenue growth from Xiaomi and clients related to the Kingsoft ecosystem and ai, as well as the increased demand for industry cloud services, although part of the increase was offset by the company's proactive reduction of low-margin content distribution network (CDN) services.

Everbright Securities commented that the company's adjusted EBITDA rate for Q3 2024 has continued to improve steadily on the basis of turning positive in the first two quarters, significantly increasing by 12.6 percentage points year-on-year, highlighting the strong growth momentum of the company's operation. The firm believes that kingsoft cloud, as the only strategic cloud platform within the Xiaomi & kingsoft ecosystem, has expected revenue elasticity and its profitability is expected to continue improving, anticipating that the company's adjusted operating profit margin is expected to turn positive in 2025.

Editor/ping