Core Insights - Kuaishou Technology reported Q2 2025 revenue of 35 billion RMB, a year-on-year increase of 13.1% [1] - Adjusted net profit for the same period was 5.6 billion RMB, reflecting a year-on-year growth of 20.1% [1] - Gross margin and adjusted net profit margin stood at 55.7% and 16.0%, respectively [1] Revenue Structure - Online marketing services, live streaming, and other services (including e-commerce and Keling) contributed 56.4%, 28.7%, and 14.9% to total revenue [1] - Overseas business revenue reached 1.3 billion RMB in Q2, marking a year-on-year increase of 20.5% [1] Online Marketing Services - Revenue from online marketing services was 19.8 billion RMB, up 12.8% year-on-year, with growth rate improving compared to Q1 [1] - The company expanded its customer base and optimized marketing solutions using AI technology, enhancing marketing efficiency [1] - AIGC solutions for marketing materials have improved conversion rates by adapting to industry characteristics and usage scenarios [1] E-commerce Performance - E-commerce GMV for Q2 reached 358.9 billion RMB, a year-on-year increase of 17.6% [1] - Monthly active buyers in the e-commerce segment reached 134 million, showing continuous growth [1] - The share of general merchandise e-commerce GMV exceeded 32% of total e-commerce GMV [1] Live Streaming Business - Revenue from the live streaming segment was 10 billion RMB, reflecting an 8% year-on-year growth [2] - The number of signed guilds increased by over 20% year-on-year, while the number of signed streamers grew by over 30% [2] Recruitment and Local Services - Daily resume submissions in the recruitment business grew by over 40%, with two-way matching scale increasing by over 150% [2] - The Ideal Home business saw daily lead generation grow by over 60% [2] - Local life services GMV experienced steady growth, with revenue increasing by nearly 120% year-on-year [2] Keling AI Business - Keling AI revenue exceeded 250 million RMB in Q2 2025, indicating accelerated commercialization [2]

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].