CMB International: Upgrades KUAISHOU-W (01024) target price to HKD 88, optimistic about positive AI development.

CMB International released a research report, stating that looking ahead to the fourth quarter, it is predicted that the revenue of Kuaishou-W (01024) will increase by 10% year-on-year, driven by stable growth in online marketing and e-commerce business. Profit forecasts for 2025 to 2027 have been slightly raised by up to 2%, with the target price raised from HK$84 to HK$88, maintaining a "buy" rating. In the previous quarter, Kuaishou's revenue increased by 14% year-on-year, in line with the bank's and market expectations. Adjusted net profit grew by 26%, surpassing the bank's and market's expectations by about 3% and 2% respectively, mainly due to improvement in operational efficiency. The bank pointed out that the value of AI empowerment in various businesses of Kuaishou is becoming evident, with Kaiyan AI's revenue breaking through 300 million RMB in the third quarter, exceeding expectations once again. AI also drove an additional 4%-5% growth in domestic advertising revenue, with a positive view on AI development.