Core Viewpoint - Kuaishou-W (01024) reported a 14% year-on-year revenue growth in Q3 2025, driven by online marketing and e-commerce, with AI technology enhancing its core business [1] Group 1: Financial Performance - Kuaishou-W's Q3 revenue reached 35.6 billion yuan, reflecting a 14% increase year-on-year [1] - Adjusted net profit grew by 26%, exceeding market expectations by approximately 3% [1] - E-commerce GMV increased by 15% to 385 billion yuan [1] Group 2: AI and Business Growth - AI technology contributed significantly to business operations, optimizing ad placements and product matching [1] - Revenue from AI products surpassed 300 million yuan, indicating initial success in commercialization [1] - AI-driven growth led to an additional 4% to 5% increase in domestic advertising revenue [1] Group 3: Future Outlook - CMB International forecasts a 10% year-on-year revenue growth for Kuaishou-W in Q4, supported by stable growth in online marketing and e-commerce [1] - Profit forecasts for 2025 to 2027 have been slightly adjusted upwards by up to 2% [1]

Core Viewpoint - Kuaishou-W (01024) has shown a strong performance with a stock price increase of over 5%, reflecting positive market sentiment following the release of its Q3 2025 earnings report [1] Financial Performance - Kuaishou-W reported a Q3 revenue growth of 14% year-on-year, reaching 35.6 billion yuan, indicating a continuous improvement in profitability [1] - The adjusted net profit increased by 26%, surpassing market expectations by approximately 3% [1] Growth Drivers - The revenue growth was primarily driven by online marketing and e-commerce, with e-commerce GMV increasing by 15% year-on-year to 385 billion yuan [1] - AI technology has significantly enhanced the core business, optimizing advertising placements and product matching, contributing to over 300 million yuan in revenue from AI products [1] Future Outlook - CMB International forecasts a 10% year-on-year revenue growth for Kuaishou-W in Q4, supported by robust online marketing and e-commerce performance [1] - The earnings forecast for 2025 to 2027 has been slightly adjusted upwards by up to 2% [1] AI Impact - The value of AI empowerment across Kuaishou's business segments is becoming evident, with AI-driven domestic advertising revenue growth of an additional 4% to 5% [1]

每经AI快讯，11月24日，港股科网股走强，网易(09999.HK)、快手(01024.HK)涨超5%，阿里巴巴 (09988.HK)涨4.5%，百度(09888.HK)、美团(03690.HK)涨3%，京东(09618.HK)涨2.3%，腾讯控股 (00700.HK)涨近2%。 ...

Kuaishou Technology 3Q25 Earnings Call Summary Company Overview - **Company**: Kuaishou Technology (1024.HK) - **Industry**: China Internet and Other Services - **Market Cap**: Rmb252,753 million - **Current Stock Price**: HK$63.50 - **Price Target**: HK$76.00 (20% upside) Key Financial Results - **3Q25 Results**: In line with estimates - Total Revenue: Rmb35,554 million, a 14% YoY increase - Online Marketing Services Revenue: Rmb20,102 million, a 14% YoY increase - Other Services Revenue: Rmb5,878 million, a 41% YoY increase - Gross Profit: Rmb19,434 million, a 15% YoY increase - Net Income: Rmb4,986 million, a 26% YoY increase - Diluted EPS: Rmb1.02, a 37% YoY increase [3][10][11] 4Q25 Outlook - **Revenue Guidance**: Slightly below market expectations - Domestic online marketing growth expected to slow to 14% - GMV growth projected to fall to 12.5-13% - Other revenue growth expected to slow from 41% in 3Q to 22-23% in 4Q due to commission rebates to e-commerce partners [2][3] 2026 Projections - **Revenue Estimates**: - 2026 Revenue: Rmb158 billion - 2027 Revenue: Rmb171 billion - **EPS Estimates**: - 2026 EPS: Rmb5.18 - 2027 EPS: Rmb5.76 [7] Strategic Insights - **Cost Control**: Management emphasizes cost control as a key factor for maintaining profitability in 4Q [4] - **Kling Product Performance**: Kling's revenue reached Rmb300 million, driven by B2B expansion, with a 40% contribution from B2B sales in 3Q25 [9][10] - **Advertising Growth**: External ads growth is expected to slow, but Internet content (short dramas, novels, and games) remains a growth driver [9] Risks and Considerations - **Upside Risks**: - Better-than-expected MAU growth - Improving ad revenue per DAU - Lower-than-expected sales and marketing expenses [16] - **Downside Risks**: - Lower-than-expected advertising revenue growth - Increased competition affecting MAU growth [16] Valuation Methodology - **Valuation Model**: Discounted cash flow model with a 12% WACC and 2% perpetual growth rate - **Kling Valuation**: Valued at 25x EV/S, aligning with top software companies globally [14] Conclusion Kuaishou Technology's 3Q25 results reflect solid growth, although the outlook for 4Q25 and 2026 shows signs of slowing growth. Cost control measures and strategic product developments, particularly with Kling, are critical for maintaining profitability and navigating competitive pressures in the market.

Group 1: ByteDance and E-commerce Integration - ByteDance has integrated its Chinese e-commerce, life services, and advertising engineering teams into a new department called "Product R&D and Engineering Architecture - China Transactions and Advertising" to enhance R&D efficiency and competitiveness in the e-commerce and life services sectors [1] Group 2: Pinduoduo Financial Performance - Pinduoduo reported Q3 2025 revenue of 108.28 billion yuan, a year-on-year increase of 9%, with net profit of 29.33 billion yuan, up 17% [2] - The revenue from online marketing services and other businesses was 53.35 billion yuan, growing 8%, while transaction service revenue reached 54.93 billion yuan, increasing by 10% [2] Group 3: Vipshop Financial Performance - Vipshop achieved Q3 2025 net revenue of 21.4 billion yuan, a year-on-year growth of 3.4%, with adjusted net profit of 1.5 billion yuan, up 14.6% [3] - The number of active users reached 40.1 million, growing 1.3%, and total merchandise transaction volume was 43.1 billion yuan, increasing by 7.5% [3] Group 4: JD.com Delivery App Launch - JD.com announced the launch of an independent app for its delivery service, which aims to capture a larger share of the instant delivery market [4] - The introduction of JD Review and JD True List is expected to enhance user engagement and platform transparency [4] Group 5: Hema's Pet Food Brand Adjustment - Hema's founder, Hou Yi, announced the closure of several physical stores for the pet food brand "Paiteshengsheng" due to unsatisfactory performance, shifting focus to online operations [5] - This decision reflects the competitive challenges in the pet food market and aims to optimize resource allocation [5] Group 6: Xibei Employee Salary Increase - Xibei has implemented an average salary increase of 500 yuan per month for frontline employees since September, in response to recent controversies [6][7] - This move is intended to boost employee satisfaction and loyalty, enhancing internal cohesion and service quality [7] Group 7: Postal Industry Performance - In October, the express delivery business generated revenue of 131.67 billion yuan, a year-on-year increase of 4.7%, with a total business volume of 18.99 billion pieces, up 6.5% [8] - The growth in express delivery revenue and volume indicates increasing consumer reliance on online shopping [8] Group 8: Flash Delivery Financial Performance - Flash Delivery reported Q3 2025 revenue of 1.005 billion yuan, showing a slight decline year-on-year, while net profit increased by 83.6% to 43.7 million yuan [9] - The order volume for Q3 was 63.2 million, down from 64.8 million in Q2 [9] Group 9: Zhongtong Express Financial Performance - Zhongtong Express achieved Q3 2025 revenue of 11.86 billion yuan, a year-on-year growth of 11.1%, with adjusted net profit increasing by 5% to 2.51 billion yuan [10] - The total package volume reached 9.57 billion pieces, growing by 9.8% [10] Group 10: Kuaishou AI Revenue Growth - Kuaishou reported Q3 2025 revenue exceeding 300 million yuan for its AI segment, with total revenue growing by 14.2% to 35.6 billion yuan [11] - The e-commerce GMV for Q3 increased by 15.2% to 385 billion yuan, indicating strengthened competitiveness in live commerce and content e-commerce [11]

E-commerce and Retail - ByteDance integrates its Chinese e-commerce, lifestyle services, and advertising engineering teams into a new "China Transaction and Advertising" department to enhance R&D efficiency and competitiveness in the e-commerce sector [1] - Pinduoduo reports Q3 revenue of 108.28 billion yuan, a 9% year-on-year increase, with net profit rising 17% to 29.33 billion yuan, indicating a slowdown in revenue growth and a strategic shift towards long-term value over short-term profits [2] - Vipshop achieves Q3 net revenue of 21.4 billion yuan, a 3.4% year-on-year increase, with adjusted net profit rising 14.6%, reflecting improved platform activity despite the need for ongoing reforms in core business areas [3] - JD.com announces the launch of an independent app for its food delivery service, aiming to capture a larger share of the instant delivery market and enhance user engagement through new features [3] - Hema's founder, Hou Yi, announces the closure of several physical stores for the pet food brand "Paiteshengsheng," citing a mismatch between operational performance and initial goals, while shifting focus to online business [4] - Xibei raises salaries for frontline employees by an average of 500 yuan per person per month to boost morale and service quality amid recent controversies [5][6] Logistics and Supply Chain - The State Post Bureau reports that in October, express delivery revenue reached 131.67 billion yuan, a 4.7% year-on-year increase, with business volume growing by 6.5%, highlighting the increasing reliance on online shopping [6] - Flash Delivery reports Q3 revenue of 1.005 billion yuan, a slight decline year-on-year, but net profit increases by 83.6% to 43.7 million yuan, indicating effective cost control [7] - ZTO Express announces Q3 revenue of 11.86 billion yuan, an 11.1% year-on-year increase, with adjusted net profit growing by 5% to 2.51 billion yuan, reflecting strong market competitiveness [8] Innovation and Investment - Keling AI reports Q3 revenue exceeding 300 million yuan, with Kuaishou's total revenue growing by 14.2% to 35.6 billion yuan, indicating progress in AI commercialization and strengthening competitiveness in live commerce [8]

Investment Rating - The report maintains a "Buy" rating for Kuaishou-W (01024.HK) [1] Core Insights - The company's Q3 performance exceeded expectations, with total revenue reaching 35.554 billion RMB, a year-on-year increase of 14.2%. Adjusted net profit was 4.986 billion RMB, up 26.3% year-on-year, with an adjusted net profit margin of 14.0%, an increase of 1.3 percentage points year-on-year [8] - The application of AI models, particularly the OneRec model, is beginning to enhance monetization efficiency across Kuaishou's ecosystem, contributing to a 4%-5% increase in online marketing service revenue in Q3 [8] - The report anticipates continued robust growth in the company's core business, driven by AI capabilities and the integration of content and e-commerce [8] Financial Projections - Total revenue projections for Kuaishou are as follows: - 2023: 113.47 billion RMB - 2024: 126.90 billion RMB - 2025: 142.12 billion RMB - 2026: 155.05 billion RMB - 2027: 167.07 billion RMB [1] - Adjusted net profit projections are: - 2023: 6.396 billion RMB - 2024: 15.335 billion RMB - 2025: 18.052 billion RMB - 2026: 20.015 billion RMB - 2027: 22.099 billion RMB [1] - The report adjusts the non-IFRS net profit forecast for 2025-2027 to 20.6 billion RMB, 22.9 billion RMB, and 25.2 billion RMB respectively, corresponding to a non-IFRS P/E ratio of 12x, 11x, and 10x [8] Market Data - The closing price of Kuaishou is 64.00 HKD, with a market capitalization of approximately 210.21 billion HKD [5] - The stock has a price-to-book ratio of 3.37 and a one-year price range of 38.15 to 92.60 HKD [5][6]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][33] Core Insights - The company's revenue for Q3 2025 reached 35.6 billion RMB, representing a year-on-year growth of 14% and a quarter-on-quarter increase of 1%. Adjusted net profit was 4.99 billion RMB, up 26% year-on-year [10][4] - The company is focusing on AI to drive growth in its core business, with significant advancements in its AI video product, Keling, which achieved quarterly revenue exceeding 300 million RMB [4][32] - The company has improved its gross margin to 55.1%, primarily due to enhanced server efficiency and reduced content costs [10][4] Financial Performance - Q3 2025 revenue breakdown: Domestic revenue was 34.4 billion RMB (up 15% YoY), while overseas revenue was 1.15 billion RMB (down 13% YoY) [10][4] - The adjusted profit margin for Q3 2025 was 14.0%, reflecting a year-on-year increase of 1.3 percentage points [10][4] - Research and development expenses for Q3 2025 were 3.7 billion RMB, an 18% increase year-on-year [10][4] User Engagement Metrics - The total monthly active users (MAU) for Q3 2025 was 731 million, a 2% increase year-on-year, while daily active users (DAU) reached 416 million, also up 2% year-on-year [2][17] - The average daily usage time per user was 134 minutes, reflecting a 1% increase year-on-year [2][17] Commercialization Efforts - E-commerce gross merchandise volume (GMV) grew by 15% year-on-year, with revenue from live e-commerce increasing by 41% [3][23] - Advertising revenue for Q3 2025 was 20.1 billion RMB, up 14% year-on-year, driven by advancements in AI technology [3][28] - Live streaming revenue reached 9.6 billion RMB, showing a 3% year-on-year increase [3][28] Future Outlook - The company has raised its revenue forecast for Keling to 1 billion RMB for the year, driven by successful AI advancements [4][32] - The adjusted profit projections for 2025-2027 are 20.7 billion RMB, 23.5 billion RMB, and 26.6 billion RMB respectively [4][33]

Investment Rating - The report maintains a "Buy" rating for Kuaishou-W (1024.HK) [1][13] Core Insights - Kuaishou's core business performance remains robust, driven by AI empowerment, with a projected revenue growth of 14.2% year-on-year for Q3 2025 [6][8] - The company has adjusted its profit forecasts, expecting revenues of RMB 1,428 billion, RMB 1,574 billion, and RMB 1,719 billion for 2025, 2026, and 2027 respectively, with adjusted net profits of RMB 208 billion, RMB 234 billion, and RMB 261 billion [11][12] Summary by Sections Recent Performance - For Q3 2025, Kuaishou reported revenue of RMB 355.54 billion, a year-on-year increase of 14.2% and a quarter-on-quarter increase of 1.4% [6] - The gross margin stood at 54.7%, with an operating profit of RMB 52.99 billion and a net profit of RMB 44.89 billion [6] User Engagement - The platform's user growth strategy and AI algorithm upgrades have led to a steady user performance, with Monthly Active Users (MAU) and Daily Active Users (DAU) reaching 731 million and 416 million respectively, reflecting year-on-year growth of 2.4% and 2.1% [8] - Daily active users spent an average of 134.1 minutes on the platform, with total usage time increasing by 3.6% year-on-year [8] Financial Metrics - The company achieved an adjusted net profit of RMB 49.86 billion for Q3 2025, marking a year-on-year increase of 20.1% [8] - The adjusted net profit margin was 14%, up 1.3 percentage points year-on-year [8] Business Segments - Online marketing services revenue grew by 14.0% year-on-year to RMB 201 billion, with AI being a significant growth driver [8] - E-commerce and other business revenues increased by 41.3% year-on-year to RMB 59 billion, with e-commerce GMV growing by 15.2% to RMB 3,850 billion [8] - Live streaming revenue saw a 2.5% year-on-year increase to RMB 96 billion, supported by content supply optimization and AI technology [8] Future Projections - The report projects a target market capitalization of RMB 3,462 billion for 2026, with a target price of HKD 80 and HKD 88 [11][12] - The expected adjusted PE ratios for 2025, 2026, and 2027 are 12, 11, and 10 respectively [11]

Core Insights - The company achieved steady revenue growth, with Q3 2025 revenue reaching 35.6 billion yuan, a year-on-year increase of 14%, and net profit of 4.49 billion yuan, up 37% year-on-year [1] - The integration of AI technology is enhancing the core business and accelerating the commercialization of its products, leading to a maintained "buy" rating [1][2] Financial Performance - Q3 2025 revenue was 35.6 billion yuan, with adjusted net profit at 4.99 billion yuan, reflecting a 26% year-on-year increase [1] - Online marketing service revenue reached 20.1 billion yuan, up 14% year-on-year, driven by continuous upgrades in marketing products using AI technology [1] - Gross margin for Q3 2025 was 54.7%, with net profit margin increasing by 2.1 percentage points to 12.6% [1] AI Technology and Innovation - The company has upgraded its online marketing products with the launch of the OneRec generative recommendation model and the G4RL bidding model, contributing to a 4-5% increase in online marketing service revenue [2] - The AI-driven features, such as the UAX automated advertising system, have achieved over 70% penetration in external circulation [2] - The launch of the AI-powered gift customization feature in live streaming resulted in over 100,000 paid gifts sent on the first day [2] E-commerce Growth - The company reported a Q3 2025 GMV of 385 billion yuan, a 15% year-on-year increase, supported by a growing user base and enhanced product offerings [3] - Daily active users (DAU) and monthly active users (MAU) reached new highs of 416 million and 731 million, respectively, with average daily usage time of 134.1 minutes [3] - The company continues to attract merchants and enhance product variety, which is expected to sustain high growth in e-commerce GMV and revenue [3]