快手（1024 HK）- 2025年第三季度业绩：AI赋能所有业务线

3Q25results:AI empowers all business lines Target Price(Previous TPUp/DownsideCurrent Price Kuaishouannounced3Q25 results: total revenueincreasedby14% YoY toRMB35.6bn, in line withBloombergconsensus/our estimate;adjusted net profitgrew by26% YoY to RMB4.99bn,3/2% ahead of consensus/ourestimate,primarilydue to enhanced operating efficiency.Revenue from Kling AIexceeded RMB300mn in 3Q25 (+c.20% QoQ), beating our expectationagain.Kuaishouhighlighted several concrete data points on how AI empowersadvertising and e-commerce businesses (e.g. driving additional 4-5% growthindomesticadrevenue), whichreinforcesour constructive views on Kuaishou’s AIdevelopment. Looking into4Q25E, weforecasttotal revenue toincreaseby10% China Internet Saiyi HE, CFA(852) 3916 1739hesaiyi@cmbi.com.hk Wentao LU, CFAluwentao@cmbi.com.hk Ye TAO, CFAfranktao@cmbi.com.hk Solid core business revenue growth.By segment in 3Q25: 1) onlinemarketing revenuegrewby14% YoY to RMB20.1bn(57% of total revenue),mainly supported by the AI-enhanced ad targeting and incremental adbudgetfrom lifestyle services & content consumption sectors. Kuaishoucombinedlocal services with the lead-based marketingbusinessin 3Q25,which furtherstrengthens itspositioningto capture more ad budget fromlocalmerchants;2)other services revenue was up by 41%YoY toRMB5.88bn (17% of total revenue), 4% ahead of consensus estimate,primarily thanks to the solid e-commerce business and Kling AI revenue Joanna Ma(852) 3761 8838joannama@cmbi.com.hk AIempowers all business lines.1)Kling AI’s revenue exceededRMB300mn in 3Q25, andmanagementnowexpectsthefull-year revenueto reach US$140mn in FY25 (c.RMB1bn, 1% of totalrevenue).2) Online marketing: leveraging AI models such asOneRec,Kuaishou has driven anadditional4-5%growth in domestic online marketing servicerevenue in3Q25.3) E-commerce: the company launched OneSearch,generativeretrievalarchitecturethat allowsmore precise product matching, driving Margin expansion onefficiencygains.AdjustedNPM rose by 1.3pptsYoY to 14.0% in 3Q25, mainly attributable to the enhancedefficiencyandoperating leverage. The company also leverages AI in coding, contentreview and customer services to improve operatingefficiency. Due to AI Source: FactSet Businessforecasts updateand valuation Our SOTP-derived target price of HK$88.0comprises, per share: 1) HK$8.2for thelive streamingbusiness, based on0.8x 2026EEV/sales, which ison parwith theaverageEV/salesfor its peers. 2) HK$29.3for theonline marketingbusiness(excl. closed-loop marketing), based on16x2026EEV/EBIT, which ison par with theaverageEV/EBITfor its peers. 3) HK$44.3for thee-commercebusiness, based on0.10x 2026EEV/GMV. The targetmultipleisa discount to theaverageEV/GMVfor its peers(0.18x 2026E EV/GMV), given 4) HK$6.1for net cash. Disclosures& Disclaimers Analyst Certification The research analyst who is primaryresponsible for the content of this research report, in whole or in part, certifies that with respect to the securities or issuerthat the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about thesubject securities or issuer; and (2)no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report.Besides, the analyst confirms that neither the analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and Futures Commission) (1) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to thedate of issue of this report; (2) willdeal in or trade in the stock(s) covered in this research report 3 business days after the date of issue of this report; (3)serve as an officer of any of the HongKong listed companies covered in this report; and (4) have any financial interests in theHong Kong listed companies covered in this report. CMBIGM RatingsBUY : Stock with potential return of over 15% over next 12 monthsHOLD: Stock with potential return of +15% to-10% over next 12 monthsSELL: Stock with potential loss of over10% over next 12 monthsNOT RATED: Stock is not rated byCMBIGM :Industry expected to outperform the relevant broad market benchmark over next 12 months:Industry expected to perform in-line withthe relevant broad market benchmark over next 12 months:Industry expected to underperform the relevant broad market benchmark over next 12 months Address: 45/F, Champion Tower, 3Garden Road, Hong Kong, Tel: (852) 3900 0888 Fax: (852) 3900 0800CMB InternationalGlobal MarketsLimited (“CMBIGM”) is a wholly owned subsidiary of CMB International Capital Corporation Limited (a wholly ownedsubsidiary of China Merchants Bank) Important Disclosures There are risks involved in transacting in any securities. The information contained in this report may not be suitable forthe purposes of all investors.CMBIGMdoes not provide individually tailored investment advice.