Kingsoft Cloud (KC US) reported in-line FY4Q21 revenue growth of +38% YoY to RMB2,660mn, although adj. EBITDA margin deteriorated due to higher IDC costs and consolidation of Camelot business. The company targets to down-size lower-margin CDN business and achieve adj. EBITDA breakeven in FY4Q22. The report suggests that margin improvement, potential HK dual listing and share repurchase could support share price rating under current undemanding valuation. The analyst maintains a BUY rating with a target price of US$7.87.
