Nomura: Kuaishou may face profit pressure, downgrades company rating to neutral.

Nomura analysts stated in a research report that Kuaishou may face profit pressure. Nomura said that Kuaishou's performance outlook for 2026 is weak, with revenue growth of about 4% and adjusted net profit declining by 15%-18%, both below market expectations. The bank expects that weak advertising momentum and increased AI capital expenditures will put pressure on profit margins. They stated, "We believe that Kuaishou's increase in AI capital expenditures is the right move, but we are concerned that this is just the beginning of a new investment cycle, which may continue beyond 2026." Nomura downgraded Kuaishou's rating from buy to neutral and lowered its target price from 77.00 Hong Kong dollars to 57.00 Hong Kong dollars.