$KINGSOFT CLOUD (03896.HK)$ In the late trading session, it rose to 9%, as of this report, it is up 9.23%, priced at 5.8 Hong Kong dollars, with a transaction volume of 0.464 billion Hong Kong dollars.

Hua Fu Securities pointed out that with the construction of the Xiaomi AI ecosystem, Kingsoft Cloud's AI revenue is expected to accelerate quarter-on-quarter in 2024. In the future, as the applications of intelligent driving, WPS AI, and other scenarios gradually develop, its share is expected to continue to increase. Additionally, on November 19, 2024, Kingsoft Cloud signed a new framework agreement with Xiaomi, proposing to set annual limits on related transactions with Xiaomi and Kingsoft for 2025, 2026, and 2027, with the upper limit for Xiaomi Cloud Computing Service significantly increasing from 0.868 billion yuan to 2.31 billion yuan, 3.138 billion yuan, and 4.035 billion yuan, further consolidating the business cooperation relationship between Kingsoft Cloud and Xiaomi.

HAITONG SEC believes that KINGSOFT is a leading Cloud Computing Service provider in the country, with continuous improvement in technology, products, and service capabilities; the company has shifted its Global Strategy to fully embrace AI, and has achieved significant results by strategically optimizing its revenue structure to enhance profitability. $XIAOMI-W (01810.HK)$ and$KINGSOFT (03888.HK)$Benefiting from the huge future demand for Cloud Computing Service, and considering the large framework agreements renewed with KINGSOFT and XIAOMI-W, public cloud service revenue is expected to grow rapidly.

Editor/Rocky