GUOTAI HAITONG SECURITIES·2026-03-27 05:45Investment 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 revenue growth and improve profitability. The company reported a revenue of CNY 395.7 billion for Q4 FY25, reflecting a year-on-year increase of 11.8% [31] - The adjusted net profit for Q4 FY25 was CNY 54.6 billion, up 16.2% year-on-year, with an adjusted net profit margin of 13.8%, an increase of 0.5 percentage points [31] - The company is expected to achieve revenues of CNY 148.9 billion, CNY 159.7 billion, and CNY 171.0 billion for FY2026, FY2027, and FY2028 respectively, with adjusted net profits projected at CNY 17.1 billion, CNY 20.2 billion, and CNY 23.8 billion for the same periods [31] Financial Summary - Revenue projections for Kuaishou are as follows (in million CNY): - FY2024: 126,898 - FY2025: 142,776 - FY2026: 148,864 - FY2027: 159,749 - FY2028: 171,048 - Year-on-year growth rates for revenue are projected at 12% for FY2024, 13% for FY2025, 4% for FY2026, and 7% for FY2027 and FY2028 [5] - The adjusted PE ratios are expected to be 9.3 for FY2024, 12.1 for FY2025, 10.2 for FY2026, 8.7 for FY2027, and 7.4 for FY2028 [5] Business Performance Overview - Kuaishou's DAU and MAU reached 408 million and 741 million respectively in Q4 FY25, with DAU/MAU ratio at 55.0% [31] - The e-commerce GMV for Q4 FY25 was CNY 521.8 billion, showing a year-on-year increase of 12.9% [27] - The online marketing service revenue for Q4 FY25 was CNY 236.2 billion, up 14.5% year-on-year, while live streaming revenue was CNY 96.6 billion, down 1.9% [26][31]