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Kuaishou Technology Class B (HK:1024)
:1024
Hong Kong Market

Kuaishou Technology Class B (1024) AI Stock Analysis

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HK

Kuaishou Technology Class B

(1024)

Rating:80Outperform
Price Target:
HK$68.00
▲(13.71%Upside)
Kuaishou Technology's overall score reflects its strong financial performance and positive earnings call, which highlight significant growth and strategic advancements, particularly in AI integration and overseas market profitability. While technical indicators show bullish momentum, they also suggest caution due to potential overbought conditions. Reasonable valuation further supports the company's potential for growth.
Positive Factors
AI Monetization
Kling AI monetization is better than expected, generating over RMB150mn.
E-commerce Growth
E-commerce GMV rose by 14% YoY with e-commerce MPUs up by 10% YoY, showing continued growth in the e-commerce segment.
Online Marketing Revenue
Core commercial businesses maintained solid growth with online marketing revenue growing by 13% YoY due to high single-digit growth of eCPM.
Negative Factors
AI Investment Impact
Stepping up AI investment will impact the adjusted net margin by 1-2ppt, although it is expected to remain stable at 14%.
Live Streaming Revenue
Live streaming revenue declined by 2% YoY, though the decline rate narrowed compared to the previous quarter.
Net Profit Margin
Adjusted NPM was down by 1ppt YoY to 14.0%, mainly due to the step-up of AI investment and increased income tax.

Kuaishou Technology Class B (1024) vs. iShares MSCI Hong Kong ETF (EWH)

Kuaishou Technology Class B Business Overview & Revenue Model

Company DescriptionKuaishou Technology, an investment holding company, provides live streaming, online marketing, and other services mainly in the People's Republic of China. It offers Kuaishou Flagship, a short video and content based social networking platform; Kuaishou Express; Kuaishou Concept; Yitian Camera, an app to create photographs, videos, and vlogs; Kmovie, a shooting, editing, and production tool; AcFun, a video sharing website; and Kuaikandian, an information content aggregator. The company also develops and sells in-house mobile games, as well as games developed by third party game developers; provides online knowledge-sharing through its platform; and offers live streaming e-commerce content services. In addition, it develops software, hardware, and network technology; and offers programming and advertising, internet information, and multimedia information technology services, as well as provides technology development, promotion, and other services. Kuaishou Technology was founded in 2011 and is headquartered in Beijing, China.
How the Company Makes MoneyKuaishou Technology generates revenue primarily through online marketing services, live streaming, and other value-added services. Online marketing services, including advertising, are a significant source of income, as businesses pay to reach Kuaishou's vast user base. The live streaming segment also contributes substantially to the company's earnings, with users purchasing virtual gifts for their favorite streamers, from which Kuaishou takes a commission. Other revenue streams include e-commerce and online games, facilitated through partnerships and integrations with various service providers and platforms. Kuaishou's diverse monetization strategies and extensive user engagement are key factors driving its financial performance.

Kuaishou Technology Class B Earnings Call Summary

Earnings Call Date:May 27, 2025
(Q1-2025)
|
% Change Since: 23.30%|
Next Earnings Date:Aug 26, 2025
Earnings Call Sentiment Positive
Kuaishou's Q1 2025 earnings call presented a generally positive outlook, with significant revenue growth, successful AI integration, and the first operational profit from overseas markets. Despite increased expenses and challenges in consumer demand, the company's strategic initiatives and technological advancements indicate strong future potential.
Q1-2025 Updates
Positive Updates
Record Revenue and Profit
Total revenue for Q1 2025 increased by 10.9% year-on-year to RMB32.6 billion, with an adjusted net profit of RMB4.6 billion, representing a 14% adjusted net margin.
Overseas Business Achievement
Kuaishou's overseas business delivered its first-ever quarter of operating profit in Q1 2025, with revenue rising by 32.7% to RMB1.32 billion.
AI Integration and Growth
Kling AI generated RMB150 million in revenue in Q1, with significant contributions from consumer subscriptions and corporate clients. AI technology has been integrated across various business segments, enhancing operational efficiency and user engagement.
E-commerce Growth
E-commerce GMV grew by 15.4% year-on-year to RMB332.3 billion, with the number of e-commerce monthly average active paying users reaching 135 million.
Live Streaming Revenue Increase
Live streaming revenue returned to a positive growth trajectory, increasing 14.4% year-on-year to RMB9.8 billion.
Negative Updates
Increased Expenses
R&D expenses rose by 16% year-on-year to RMB3.3 billion, and administrative expenses increased by 79.2% year-on-year to RMB828 million.
Lower Consumer Demand
The company acknowledged ongoing challenges in consumer demand, which could impact future growth.
Company Guidance
During Kuaishou Technology's Q1 2025 earnings call, the company reported a robust financial performance amid challenging global conditions, driven by AI technology integration across its platforms. Key metrics included a record average daily active users (DAUs) of 408 million, a revenue increase to RMB32.6 billion, and a gross profit (GP) margin nearing 55%. The adjusted net profit reached RMB4.6 billion, reflecting a 14% adjusted net margin. Kling AI, a key growth driver, generated over RMB150 million in Q1 revenue, maintaining its global leadership in technology and commercialization. The overseas business achieved its first operating profit, with a 32.7% revenue rise to RMB1.32 billion. Kuaishou's strategic focus on AI enhanced user experience, boosted marketing conversion efficiency, and improved e-commerce operations, contributing to a 15.4% year-on-year GMV growth to RMB332.3 billion. The call highlighted significant user growth milestones, content ecosystem enhancements, and strategic advancements in AI-driven marketing and e-commerce capabilities.

Kuaishou Technology Class B Financial Statement Overview

Summary
Kuaishou Technology showcases impressive financial performance with significant revenue growth, improved profitability, and strong cash flow generation. Despite increased liabilities, the company's solid balance sheet and effective cash management reflect stability and potential for future growth.
Income Statement
85
Very Positive
Kuaishou Technology has demonstrated strong revenue growth with a 11.8% increase from 2023 to 2024. The company achieved a solid gross profit margin of 54.6% and a net profit margin of 12.1% in 2024. Additionally, the EBIT margin improved significantly to 12.0%, reflecting enhanced operational efficiency. These metrics indicate robust growth and profitability, positioning the company favorably within its industry.
Balance Sheet
78
Positive
The company's balance sheet shows a healthy equity ratio of 44.3% and a manageable debt-to-equity ratio of 0.35 in 2024, indicating a strong financial structure. With a return on equity of 24.7%, Kuaishou is effectively generating returns on shareholders' investments. However, the increase in total liabilities suggests a potential risk that needs monitoring.
Cash Flow
83
Very Positive
Kuaishou's cash flow statement highlights a substantial growth in free cash flow from 2023 to 2024. The operating cash flow to net income ratio of 1.94 reflects strong cash generation capabilities. Additionally, the free cash flow to net income ratio is 1.94, indicating efficient cash management and solid financial health.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue126.90B113.47B94.18B81.08B58.78B
Gross Profit69.29B57.39B42.13B34.03B23.81B
EBITDA17.74B14.59B-5.41B-71.65B-112.11B
Net Income15.34B6.40B-13.69B-78.08B-116.64B
Balance Sheet
Total Assets139.87B106.30B89.31B92.52B52.15B
Cash, Cash Equivalents and Short-Term Investments51.50B48.86B35.41B45.28B26.81B
Total Debt29.53B15.72B12.93B13.61B5.71B
Total Liabilities77.85B57.22B49.47B47.42B212.20B
Stockholders Equity62.00B49.06B39.83B45.09B-160.05B
Cash Flow
Free Cash Flow21.72B15.88B-2.42B-13.28B-3.62B
Operating Cash Flow29.79B20.78B2.20B-5.52B2.29B
Investing Cash Flow-36.68B-19.86B-17.55B-18.36B-4.87B
Financing Cash Flow6.71B-1.36B-4.48B36.50B19.29B

Kuaishou Technology Class B Technical Analysis

Technical Analysis Sentiment
Positive
Last Price59.80
Price Trends
50DMA
53.79
Positive
100DMA
54.14
Positive
200DMA
49.90
Positive
Market Momentum
MACD
1.75
Negative
RSI
63.46
Neutral
STOCH
77.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1024, the sentiment is Positive. The current price of 59.8 is above the 20-day moving average (MA) of 57.71, above the 50-day MA of 53.79, and above the 200-day MA of 49.90, indicating a bullish trend. The MACD of 1.75 indicates Negative momentum. The RSI at 63.46 is Neutral, neither overbought nor oversold. The STOCH value of 77.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1024.

Kuaishou Technology Class B Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
HK$257.31B15.6625.82%9.42%33.34%
57
Neutral
C$3.20B6.03-0.75%6.65%-2.23%-17.86%
$593.79B21.4721.25%0.89%
€2.74B12.576.58%8.86%
84
Outperform
HK$219.00B21.7214.34%0.97%4.16%82.42%
75
Outperform
HK$239.53B8.699.84%-1.73%32.35%
72
Outperform
HK$18.96B7.1210.79%8.29%0.43%21.65%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1024
Kuaishou Technology Class B
61.75
15.35
33.08%
TCTZF
Tencent Holdings
65.81
17.30
35.66%
DE:8AHA
Autohome Inc Class A
5.40
-0.38
-6.57%
HK:9888
Baidu, Inc. Class A
85.40
-0.70
-0.81%
HK:9898
Weibo Corp Class A
77.35
21.39
38.22%
HK:1698
Tencent Music Entertainment Group Class A
73.15
18.99
35.06%

Kuaishou Technology Class B Corporate Events

Kuaishou Technology Successfully Passes All Resolutions at AGM
Jun 19, 2025

Kuaishou Technology announced that all ordinary resolutions at its Annual General Meeting on June 19, 2025, were passed by poll. The resolutions included receiving the audited financial statements, re-electing directors, authorizing the board to fix directors’ remuneration, and granting mandates for share repurchase and issuance. This outcome reflects strong shareholder support and may enhance the company’s governance and operational flexibility.

The most recent analyst rating on (HK:1024) stock is a Buy with a HK$65.00 price target. To see the full list of analyst forecasts on Kuaishou Technology Class B stock, see the HK:1024 Stock Forecast page.

Kuaishou Technology Reports Strong Q1 2025 Revenue Growth
May 27, 2025

Kuaishou Technology announced its unaudited consolidated results for the first quarter of 2025, showing a 10.9% increase in revenues compared to the same period in 2024, reaching RMB 32,608 million. Despite a slight decrease in profit for the period, the company saw growth in adjusted net profit and EBITDA, indicating strong operational performance. The domestic market remains the primary revenue driver, while the overseas segment showed significant growth. The company also reported an increase in average daily and monthly active users, as well as growth in total e-commerce GMV, highlighting its expanding user base and e-commerce activities.

The most recent analyst rating on (HK:1024) stock is a Buy with a HK$65.00 price target. To see the full list of analyst forecasts on Kuaishou Technology Class B stock, see the HK:1024 Stock Forecast page.

Kuaishou Technology Schedules Board Meeting for Quarterly Results
May 7, 2025

Kuaishou Technology has announced that its board of directors will meet on May 27, 2025, to review and approve the unaudited consolidated first quarterly results for the period ending March 31, 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder interests.

Kuaishou Technology Announces Annual General Meeting with Key Resolutions
Apr 28, 2025

Kuaishou Technology has announced its annual general meeting scheduled for June 19, 2025, in Beijing. The meeting will address several key resolutions, including the re-election of directors, authorization for the board to fix directors’ remuneration, and the granting of mandates for share repurchases and issuance of Class B shares. These resolutions aim to strengthen the company’s governance and operational capabilities, potentially impacting its market position and shareholder value.

Kuaishou Technology Announces Board Changes with New Independent Director Appointment
Apr 27, 2025

Kuaishou Technology announced the resignation of Prof. Xiao Xing as an independent non-executive director due to other business commitments, effective April 28, 2025. The company expressed gratitude for her contributions. Simultaneously, Ms. Lu Rong has been appointed as the new independent non-executive director. Ms. Lu, a seasoned venture capitalist with extensive experience in technology investments, is expected to bring valuable insights and a broader perspective to the company’s strategic planning and business development.

Kuaishou Technology Announces Board Composition and Committee Roles
Apr 27, 2025

Kuaishou Technology has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The board has four committees: Audit, Remuneration, Nomination, and Corporate Governance, with specific directors assigned as members or chairpersons. This announcement provides clarity on the governance structure of Kuaishou Technology, potentially impacting its strategic direction and stakeholder confidence.

Kuaishou Technology Grants Over 58 Million RSUs to Employees
Apr 25, 2025

Kuaishou Technology announced the grant of 58,197,435 Restricted Share Units (RSUs) to eligible employees under its 2023 Share Incentive Scheme. This initiative aims to align the interests of the employees with the company’s long-term growth and profitability by offering them ownership stakes. The RSUs have a vesting period ranging from 0 to 48 months, with performance targets applicable to designated employees. The grant is designed to retain talent and encourage contributions to the company’s success.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 07, 2025