Update shared on 10 Nov 2025
Fair value Increased 0.063%Narrative Update on Kuaishou Technology
Analysts have raised their price target for Kuaishou Technology from $8.00 to $8.50. They cite slightly better than expected performance in live-streaming and e-commerce as key factors supporting this upward revision.
Analyst Commentary
Bullish Takeaways
- Bullish analysts highlight Kuaishou Technology's second quarter results, with live-streaming and e-commerce performance surpassing expectations and suggesting improved execution in key revenue drivers.
- The slight outperformance in core business segments has led to a price target increase, indicating increased confidence in future growth potential and valuation upside.
- Steady advertising results are seen as a stabilizing factor for the company, helping to balance its broader growth initiatives.
- Raising the price target suggests that analysts see continued momentum in user engagement and monetization efforts, which supports a positive outlook for continued expansion.
Bearish Takeaways
- Bearish analysts point out that the price target increase is modest, which may reflect ongoing caution regarding broader execution risks and competitive pressures within the sector.
- While advertising performance was in line with expectations, the lack of upside in this segment may limit near-term valuation expansion.
- Concerns remain over the sustainability of growth in live-streaming and e-commerce amid market competition and potential regulatory changes, which could impact future results.
What's in the News
- Kuaishou Technology's board scheduled a meeting on November 19, 2025 to consider and approve unaudited consolidated third quarter results for the Group ending September 30, 2025 (Key Developments).
- The company launched Kling AI 2.5 Turbo Video Model in September, with major upgrades in text-to-video and image-to-video generation, superior performance in blind professional tests, and a price nearly 30% lower than its predecessor (Key Developments).
- A special dividend of HKD 0.46 per share was announced, with an ex-dividend date of September 9, 2025 and payment scheduled for October 6, 2025 (Key Developments).
- Between April and August 2025, Kuaishou repurchased 14,622,600 shares for HKD 731.59 million, marking the completion of a 2.9% share buyback program, totaling HKD 5,648.09 million since May 2024 (Key Developments).
Valuation Changes
- Fair Value has risen slightly from 89.96 to 90.01, reflecting a minimal increase in the company’s estimated intrinsic value.
- Discount Rate increased from 8.34% to 8.72%, indicating a marginally higher perceived risk or required return by analysts.
- Revenue Growth was nearly unchanged, moving from 9.76% to 9.76%, suggesting expectations for top-line expansion remain stable.
- Net Profit Margin improved very slightly from 15.62% to 15.63%, signaling a small anticipated boost in profitability.
- Future P/E ratio edged up from 16.04x to 16.20x, showing a modestly higher valuation multiple assigned to the company’s future earnings.
Disclaimer
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