Zhi Tong Cai Jing·2025-08-26 09:17Core Viewpoint - The report from CMB International highlights that Kuaishou-W (01024) has shown a 13% year-on-year increase in total revenue for Q2 this year, aligning with expectations, while adjusted net profit reached 5.6 billion RMB, reflecting a 20% growth, surpassing expectations by 10% due to improved gross margin and marketing expense ratio [1] Financial Performance - Kuaishou's Q2 total revenue increased by 13% year-on-year, meeting expectations [1] - Adjusted net profit for Q2 was 5.6 billion RMB, a 20% year-on-year increase, exceeding expectations by 10% [1] - The company has slightly raised its adjusted net profit forecasts for the next two years [1] Valuation and Target Price - CMB International has adjusted the valuation to 2026, applying a 15x price-to-earnings ratio, and raised the target price to 90 HKD while maintaining a "Buy" rating [1] E-commerce and Advertising Outlook - The company is expected to see a 15% year-on-year increase in total e-commerce gross merchandise volume (GMV) for Q3, driven by increased frequency across multiple scenarios [1] - Advertising revenue is projected to grow by 13%, with ongoing commercial growth potential [1] - Kuaishou has raised its full-year revenue guidance to 1.25 billion USD, indicating further opportunities for exceeding expectations [1] Strategic Focus - CMB International is optimistic about Kuaishou's multi-scenario operations enhancing e-commerce repurchase rates [1] - The company is noted for its leading capabilities in film generation technology and commercialization [1] - Attention is drawn to the long-term penetration progress across multiple scenarios and the role of AI in empowering the platform's ecosystem and commercialization [1]