Investment Rating - The report assigns a positive investment rating to Kuaishou (1024 HK), indicating an optimistic outlook for its advertising business and overall performance [1]. Core Viewpoints - Kuaishou's Q1 2025 results met expectations, with revenue growth of 11% year-on-year to RMB 32.6 billion, and gross profit increased by 10.4% to RMB 17.8 billion. Net profit reached RMB 4 billion, a slight decline of 3.4% year-on-year, primarily due to increased employee benefits [1][2]. - The domestic market remains the main growth driver, contributing 96% of total revenue, while the overseas market turned profitable with a profit of RMB 28 million [1]. - The online marketing service revenue growth slowed to 8% year-on-year, but management observed a significant rebound in advertising volume starting in April, expecting double-digit growth in Q2 [1]. - Kuaishou continues to expand into traditional industries, such as job recruitment and real estate transactions, contributing to a diversified revenue stream [1]. - The average daily active users (DAU) reached 408 million, and monthly active users (MAU) reached 712 million, with respective year-on-year growth of 3.6% and 2.1% [2]. - The e-commerce gross merchandise volume (GMV) grew by 15.4% year-on-year to RMB 332 billion, supported by a robust business model combining live streaming, shopping, and short videos [2]. - The forecasted price-to-earnings ratio for Kuaishou in 2025 is 12.9 times, reflecting its potential for further monetization through content expansion and precise matching capabilities [2].