Changjiang Securities·2025-11-24 13:44Investment Rating - The investment rating for Kuaishou is "Buy" and is maintained [7] Core Insights - Kuaishou's Q3 2025 revenue reached 35.6 billion CNY, representing a year-on-year growth of 14%. The Non-GAAP net profit was 5 billion CNY, up 26% year-on-year. Domestic business operating profit was 5.4 billion CNY, a significant increase of 54% year-on-year, while overseas business incurred an operating loss of 200 million CNY [2][4] Revenue Breakdown - Kuaishou's Q3 2025 online marketing service revenue was 20.1 billion CNY, growing 14% year-on-year, contributing 56.5% to total revenue. The growth was driven by AI-enabled advertising, with ad load and eCPM both improving, leading to a 4-5% increase in domestic advertising revenue. The company also saw a 3% increase in live streaming revenue, totaling 9.6 billion CNY, contributing 26.9% to total revenue. Other services, including e-commerce, generated 5.9 billion CNY, a 41% increase year-on-year, contributing 16.6% to total revenue [8] User Engagement - Kuaishou's content ecosystem continues to thrive, with average daily active users (DAU) reaching 416 million, a 2.1% year-on-year increase, and average monthly active users (MAU) reaching 731 million, up 2.4% year-on-year [8] Profitability Metrics - Kuaishou achieved a gross margin of 54.7% in Q3 2025, with an adjusted net profit margin of 14.0%, reflecting a year-on-year increase of 0.4 percentage points and 1.3 percentage points, respectively. R&D expenses rose by 17.7% to 3.7 billion CNY, primarily due to increased AI investments and employee benefits [8] AI Business Development - The commercialization of Kuaishou's AI, known as Keling, progressed smoothly, generating over 300 million CNY in revenue in Q3 2025, a 20% increase from the previous quarter. The Keling 2.5 Turbo model topped global rankings in video and image generation shortly after its launch [8]