Jefferies released a research report stating that the Kuaishou-W (01024) target price was raised by 2.6% from HK$78 to HK$80, making it a “buy” rating. Kuaishou's adjusted profit for the third quarter rose 24% year over year to RMB 3.95 billion, basically in line with pre-match expectations and beat the forecast.
The bank believes that the total value of Kuaishou product transactions will increase in the fourth quarter of this year, as expected by the market. At the same time, it believes that the total growth in its active merchants and consumer merchants will remain solid. External advertising revenue is expected to benefit from the rapid growth trend of short videos, and gross margin will also continue to expand. It is expected to increase to 54% in the fourth quarter, increasing adjusted profit to 4.67 billion yuan.
Jefferies mentioned that AI (artificial intelligence) monetization is still in its early stages. It is expected that the average daily active users of Kuaishou will increase to more than 0.4 billion in the fourth quarter of this year. Jefferies also raised its revenue forecast for 2025 by about 2%.
