GUOTAI HAITONG SECURITIES·2026-03-27 05:27Investment Rating - The report maintains a "Buy" rating for Kuaishou-W [7] Core Insights - Kuaishou is significantly enhancing its AI investments, which is expected to drive growth in its content and commercial ecosystem. The AI large model technology has notably improved online marketing operations [3][4] - The company reported a revenue of 39.57 billion RMB in Q4 FY25, reflecting a year-on-year growth of 11.8%. The gross margin was 55.1%, up by 1.1 percentage points [31][21] - The adjusted net profit for Q4 FY25 was 5.46 billion RMB, a year-on-year increase of 16.2%, with an adjusted net profit margin of 13.8%, up by 0.5 percentage points [31][21] Financial Summary - Revenue projections for FY2026-2028 are estimated at 148.9 billion, 159.7 billion, and 171.0 billion RMB respectively, with adjusted net profits expected to be 17.1 billion, 20.2 billion, and 23.8 billion RMB [31][32] - The adjusted PE ratio for FY2026 is projected at 13x, with a target price of 57.9 HKD based on strong momentum in AI [31][32] - The company’s DAU and MAU reached 408 million and 741 million respectively in Q4 FY25, with a daily average usage time of 126 minutes [19][31] Business Performance - Kuaishou's online marketing service revenue grew by 14.5% year-on-year to 23.62 billion RMB in Q4 FY25, while live streaming revenue slightly declined by 1.9% to 9.66 billion RMB [26][31] - The e-commerce GMV reached 521.8 billion RMB, marking a year-on-year increase of 12.9% [27][31] - The company launched the first unified multimodal video model, "Keling O1," and introduced advanced AI models that enhance video understanding and generation capabilities [31][31]