news flash·2025-05-29 02:20Core Viewpoint - The report from CMB International maintains a target price of HKD 64 for Kuaishou (01024.HK), with Q1 2025 performance meeting expectations, showing a year-on-year revenue increase of 11% and adjusted net profit growth of 4% [1] Financial Performance - Kuaishou's total revenue and adjusted net profit for Q1 2025 increased by 11% and 4% year-on-year, respectively, aligning with expectations [1] - The adjusted net profit margin stands at 14% [1] - E-commerce GMV (Gross Merchandise Volume) grew by 15% year-on-year, also meeting expectations [1] Future Projections - For Q2 2025, e-commerce GMV is projected to increase by 14%, with influencer distribution potentially leading to a slight improvement in commission rates [1] - Advertising revenue is expected to see double-digit year-on-year growth, driven by improved infrastructure and local consumption [1] - The company anticipates that Kuaishou's revenue will exceed USD 100 million for the year [1] Valuation and Rating - CMB International maintains a profit forecast of RMB 20.3 billion for 2025 [1] - Given Kuaishou's advanced video generation capabilities and commercialization potential, a valuation premium is applied, resulting in a target price based on a 13x P/E ratio for 2025 [1] - The rating remains "Buy" with a target price of HKD 64 [1]