KUAISHOU TECHNOLOGY(1024.HK)2Q25 PREVIEW：INLINE QUARTER;ACCELERATED MONETISATIONS ON SOLIDIFIED LEADING POSITION OF KLING AI

Core Viewpoint - Kuaishou is expected to report inline 2Q25 results with a projected 11% YoY revenue growth and 14.6% adjusted net profit margin, driven by accelerated monetization of Kling AI [1][3] Group 1: Financial Performance Expectations - Total revenue for 2Q25 is estimated to rise 11% YoY to RMB34.5 billion, aligning with consensus expectations [3] - Revenue contributions from streaming, online advertising, and eCommerce are projected to grow by 5% YoY, 12% YoY, and 22% YoY respectively [3] - Kling AI is forecasted to generate approximately RMB270 million in revenue for 2Q25, indicating continued acceleration in monetization efforts [3] Group 2: AI Strategy Execution - The company is effectively executing its AI strategies, particularly with Kling AI, focusing on version upgrades, internal ad and eCommerce integrations, and expansion into various industry verticals [2] - Kling AI is expected to contribute RMB1.2 billion in revenue (0.8% of total revenue) in 2025, driven by improved paying penetration among global users [2] - The company maintains stable forecasts for online advertising and eCommerce GMV despite raising Kling revenue estimates, indicating confidence in the core business [2] Group 3: Operational Adjustments - Total operating expenses assumptions for FY2025-27 have been raised by 1-2% due to committed investments in AI, leading to a 1% reduction in adjusted EPS estimates for FY2025-26 [2]