Shenwan Hongyuan Securities·2025-06-09 11:39Investment Rating - The report maintains a "Buy" rating for Kuaishou-W (01024) [1] Core Insights - Kuaishou's AI product, Keling, has exceeded commercialization expectations, contributing significant incremental revenue and showing potential for long-term performance and valuation flexibility [5] - The company reported a strong user base with DAU and MAU reaching 408 million and 712 million respectively, indicating sustained growth and market leadership [5] - The financial forecasts have been adjusted, with revenue expectations for 2025 and 2026 revised to RMB 143.9 billion and RMB 158.4 billion respectively, alongside adjusted net profit estimates [5] Financial Data and Profit Forecast - Revenue projections for Kuaishou are as follows: - 2023: RMB 113.47 billion - 2024: RMB 126.90 billion - 2025E: RMB 143.86 billion - 2026E: RMB 158.43 billion - 2027E: RMB 173.01 billion - Adjusted net profit estimates are: - 2023: RMB 10.27 billion - 2024: RMB 17.72 billion - 2025E: RMB 20.26 billion - 2026E: RMB 23.88 billion - 2027E: RMB 27.64 billion - The company’s earnings per share (EPS) are projected to grow from RMB 2.38 in 2023 to RMB 6.42 in 2027 [4][6]