Company Reports

Kuaishou operates China's second-largest short-video app, with a user base mainly concentrated in lower-tier cities. Like its other short-video peers, Kuaishou benefits from a user-generated content model, avoiding significant expenses on original productions or licensing, and thereby enjoying very low content costs. The platform primarily monetizes through advertising, livestreaming, and e-commerce.

Kuaishou reported an in-line second quarter, with revenue growing 1% and operating profit down 29% on heavier investment in Kling, its video-generation artificial intelligence model. The share price is down about 11% after the results and guidance.

Kuaishou operates China's second-largest short-video app, with a user base mainly concentrated in lower-tier cities. Like its other short-video peers, Kuaishou benefits from a user-generated content model, avoiding significant expenses on original productions or licensing, and thereby enjoying very low content costs. The platform primarily monetizes through advertising, livestreaming, and e-commerce.

Kuaishou raised about CNY 19 billion (USD 2.8 billion) for Kling, a video generation model, from 36 investors at a USD 15 billion valuation, diluting its stake to 68% but letting it continue consolidating the unit. The valuation is below the USD 20 billion reported by The Wall Street Journal in May.

Kuaishou's first-quarter revenue grew 3%, but recurring operating profit fell 33% on investments in its KlingAI video-generation tool. Kling's annualized revenue run rate reached USD 500 million in March, up from USD 300 million in January.

The Information's unconfirmed report says Kuaishou is preparing to spin off its Kling AI video-generation unit at a valuation of about USD 20 billion ahead of a 2027 IPO, based on expectations that Kling could reach USD 1.3 billion in annualized recurring revenue by the first quarter of 2027.

Kuaishou operates China's second-largest short-video app, with a user base mainly concentrated in lower-tier cities. Like its other short-video peers, Kuaishou benefits from a user-generated content model, avoiding significant expenses on original productions or licensing, and thereby enjoying very low content costs. The platform primarily monetizes through advertising, livestreaming, and e-commerce.

Kuaishou operates China's second-largest short-video app, with a user base mainly concentrated in lower-tier cities. Like its other short-video peers, Kuaishou benefits from a user-generated content model, avoiding significant expenses on original productions or licensing, and thereby enjoying very low content costs. The platform primarily monetizes through advertising, livestreaming, and e-commerce.

Kuaishou's fourth-quarter revenue grew 12% year on year, with recurring operating profit up 53% for 2025. However, management expects capex in 2026 to increase more than 70% as the firm doubles down on its video artificial intelligence ambitions, primarily through its flagship product, KlingAI.

Kuaishou operates China's second-largest short-video app, with a user base mainly concentrated in lower-tier cities. Like its other short-video peers, Kuaishou benefits from a user-generated content model, avoiding significant expenses on original productions or licensing, and thereby enjoying very low content costs. The platform primarily monetizes through advertising, livestreaming, and e-commerce.

Kuaishou operates China's second-largest short-video app, with a user base mainly concentrated in lower-tier cities. Like its other short-video peers, Kuaishou benefits from a user-generated content model, avoiding significant expenses on original productions or licensing, and thereby enjoying very low content costs. The platform primarily monetizes through advertising, livestreaming, and e-commerce.

Kuaishou operates China's second-largest short-video app, with a user base mainly concentrated in lower-tier cities. Like its other short-video peers, Kuaishou benefits from a user-generated content model, avoiding significant expenses on original productions or licensing, and thereby enjoying very low content costs. The platform primarily monetizes through advertising, livestreaming, and e-commerce.

Kuaishou delivered 14% year-on-year revenue growth in the third quarter, driven by robust advertising revenue. Operating profit surged over 70%, primarily due to effective control of marketing costs. Management’s outlook for the fourth quarter points to a slight slowdown in revenue growth.

Kuaishou hosted its 2025 investor day in Chengdu, focusing primarily on qualitative aspects of business development, without providing additional earnings guidance.

Kuaishou posted 13% year-on-year revenue growth in the second quarter, with recurring operating profit up 35%. Its video AI generator, Kling, grew revenue by over 70% sequentially. Management also announced its first special dividend of HKD 2 billion, representing a 36% payout for the quarter.

Kuaishou operates China's second-largest short-video app, with a user base mainly concentrated in lower-tier cities. Like its peers, Kuaishou benefits from a user-generated content model, avoiding significant expenses on original productions or licensing, and thereby enjoying very low content costs. The platform primarily monetizes through advertising, livestreaming, and e-commerce.

We are transferring coverage of Kuaishou, China's second-largest short-video platform.

Kuaishou reported 11% year-on-year revenue growth for first quarter, with operating profit (excluding other income and gains) up 12%. While management raised guidance for Kling, its AI image and video generation tool, overall 2025 guidance is unchanged as Kling’s contribution remains minimal.

Kuaishou's fourth-quarter revenue grew 9% year on year, driven by a 13% increase in advertising revenue. Operating profit rose 10%, with operating margin remaining largely flat.

We maintain our fair value estimate for Kuaishou at HKD 70 per share after it reported third-quarter 2024 revenue of CNY 31.1 billion, which was relatively in line with our estimate. Online marketing revenue grew 20% year on year as daily active users on the platform grew to 408 million, a 5% year-on-year increase. The livestream business remains a drag as its revenue declined 4% year on year and we believe its long-term business outlook remains challenged given the maturity and saturation of the industry. Positively, e-commerce revenue grew 18% year on year. The firm also saw a 280-basis-point decline in recurring operating margin as it is spending more on user acquisition, artificial intelligence, and content costs to compete, but we believe the firm should see margin expansion from stable advertising and e-commerce growth.