2025-05-29-Jefferies-快手（1024）_集团投资者电话会议要点_7页_104kb

Kuaishou Technology (1024 HK) Equity Research Summary

Key Takeaways

• AI and Commercial Ecosystem: Artificial Intelligence enhances user interest understanding and enables precise matching through large models, strengthening the overall commercial system.
• Kling Development: Kling, KS's AI video tool, drove revenue exceeding RMB150 million in Q1 2025; expected to reach USD100 million in 2025. Revenue composition is approximately 70% from professional subscriptions and 30% from business API calls. Kling benefits from a large addressable market in video content production for ads and entertainment, with strong overseas penetration (70%).
• Ecommerce Performance: KS's three-in-one model integrates live streaming, shopping malls, and short videos, with over 30% year-over-year merchant growth and 135 million monthly active paying users in Q1. KS supports merchants to improve performance and drives demand through events like 618.
• Online Marketing Growth: Accelerated revenue from ad monetization (constituting about 30% of GMV in Q1), SME spending via tools like Omni-platform Marketing Agent 4.0, and content verticals such as short plays.
• Overseas Business: KS's overseas operations in markets like Brazil, Middle East, and Indonesia achieved profitability in Q1, focused on user growth, content, and ecommerce initiatives.

Valuation and Risks

• Rating: Jefferies recommends "Buy" with a 12-month target price of HK$81 (current price HK$52), based on a PE valuation.
• Key Risks: Potential slower user growth due to competition and disruptive innovation; macro headwinds affecting advertising; and stringent regulations.