CMB International: Raises Kuaishou's target price to HK$88, maintains "buy" rating.

CMB International released a research report stating that the previous quarter's revenue on Kuaishou increased by 14% year on year, meeting the bank's and market expectations. Adjusted net profit grew by 26%, exceeding the bank's and market expectations by about 3% and 2% respectively, mainly due to the improvement in operational efficiency. The value of AI's empowerment in various businesses of Kuaishou is becoming apparent, with AI-driven revenue from Kuai AI exceeding 300 million yuan in the third quarter, once again exceeding expectations. AI further drove domestic advertising revenue to grow an additional 4% to 5%. Looking ahead to the fourth quarter, the bank predicts that Kuaishou's revenue will grow by 10% year on year, driven by robust growth in online marketing and e-commerce businesses. Profit forecasts for 2025 to 2027 are slightly raised by up to 2%, with the target price raised from HK$84 to HK$88, maintaining a "buy" rating.