Ge Long Hui·2025-08-23 02:51Core Viewpoint - The company shows strong revenue and profit growth in Q2, driven by its main business and the accelerated commercialization of its AI capabilities, maintaining a "buy" rating for future profitability [1][2]. Group 1: Financial Performance - In H1 2025, the company achieved revenue of 67.7 billion yuan (up 12% year-on-year) and adjusted net profit of 10.2 billion yuan (up 12.5% year-on-year) [1]. - In Q2, revenue reached 35 billion yuan (up 13.1% year-on-year) with an adjusted net profit of 5.6 billion yuan (up 20.1% year-on-year), resulting in an adjusted net profit margin of 16% (up 0.9 percentage points) and a gross margin of 55.7% (up 0.4 percentage points) [1]. - The company forecasts net profits for 2025-2027 to be 18.818 billion yuan, 22.685 billion yuan, and 25.452 billion yuan, respectively, with corresponding EPS of 3.1 yuan, 4.0 yuan, and 4.8 yuan, leading to a current PE ratio of 21.1, 16.4, and 13.9 times [1]. Group 2: User Engagement and Revenue Streams - In Q2 2025, the daily active users (DAU) of the Kuaishou app reached 409 million (up 3.4% year-on-year), while monthly active users (MAU) reached 715 million (up 3.3% year-on-year) [1]. - Online marketing service revenue was 19.8 billion yuan (up 12.8% year-on-year), driven by AI-optimized marketing solutions [2]. - Live streaming revenue was 10 billion yuan (up 8% year-on-year), supported by an increase in the number of agencies and streamers by over 20% and 30%, respectively [2]. - Other service revenue reached 5.2 billion yuan (up 26% year-on-year), with e-commerce GMV growing 17.6% to 358.9 billion yuan [2]. Group 3: AI Commercialization - In Q2, revenue from Keling AI exceeded 250 million yuan, with a global user base surpassing 45 million and over 20,000 enterprise clients [2]. - The Keling AI model 2.1 was launched in May, showing strong performance in dynamic representation and physical simulation [2]. - AI continues to enhance the main business, with UAX solutions accounting for 65% of total external consumption in Q2, and AIGC reducing costs in content production and smart broadcasting [2].