KUAISHOU TECHNOLOGY(1024.HK)：3Q25 BEAT;DEDICATED AI EXECUTIONS BEAR FRUITS

Core Insights - Company reported a 14% year-over-year (YoY) revenue growth in 3Q25, reaching RMB35.6 billion, which was 1% above consensus expectations [2] - Operating profit surged by 70% YoY to RMB5.3 billion, exceeding consensus by 16% [2] - The integration of AI across various business segments is driving sustainable profitable growth, with a focus on monetization and operational efficiency [1] Revenue and User Metrics - Daily Active Users (DAUs) reached a record high of 416 million, indicating strong user engagement [2] - Online advertising revenue grew by 14% YoY, benefiting from AI model enhancements, with domestic online ad revenue increasing by over 16% YoY [2] - E-commerce Gross Merchandise Volume (GMV) grew by 15% YoY, with pan-shelf-based GMV increasing by 37% YoY [2] Profitability and Margins - Operating profit margin (OPM) was reported at 14.9%, with domestic OPM at 15.7% and overseas OPM at -5.5% [2] - Adjusted net profit margin (NPM) was 14.0%, aligning with consensus expectations [2] AI Integration and Strategic Focus - Company has effectively integrated AI into its operations, enhancing material production, ad targeting, product matching, and user acquisition efficiency [1] - The focus on AI is expected to continue driving improvements in both e-commerce and online advertising segments [3] Future Outlook and Valuation - Company maintains its revenue forecasts for FY2025-27, reflecting consistent strategic execution [1] - New target price set at HK$66.0, based on an 11.0x FY2026E adjusted EPS of HK$6.00 [3]