Update shared on12 Oct 2025
Fair value Increased 2.52%Narrative Update on Kuaishou Technology
Analysts have raised their price target for Kuaishou Technology from $8.00 to $8.50, citing better than expected performance in live streaming and e-commerce, with advertising results remaining in line with forecasts.
Analyst Commentary
Bullish Takeaways
- Bullish analysts noted that Kuaishou Technology's Q2 live-streaming and e-commerce segments slightly exceeded expectations, signaling resilient user engagement and effective monetization strategies.
- The company's ability to deliver solid e-commerce performance is seen as a positive driver for revenue growth and improving margins.
- Maintaining advertising results in line with forecasts demonstrates stable execution in the face of macroeconomic uncertainties.
- Upward price target adjustments reflect optimism regarding the company’s sustained momentum and favorable valuation based on recent results.
Bearish Takeaways
- Bearish analysts caution that, despite improvements, overall ratings remain neutral due to competitive pressures in the digital advertising market.
- Concerns persist over the sustainability of above-expectation growth in live-streaming and e-commerce as sector dynamics change.
- The lack of significant outperformance in advertising limits the potential for aggressive valuation upgrades in the near term.
- Execution risks continue regarding the ability to maintain momentum and capitalize on shifting market opportunities as competition intensifies.
What's in the News
- Kuaishou Technology launched the Kling AI 2.5 Turbo Video Model, which features major upgrades to text-to-video and image-to-video capabilities. The model outperformed competitors in professional blind tests and offers enhanced generation quality at a 30% lower price compared to the previous version. (Key Developments)
- The company completed a share repurchase of 14,622,600 shares for HKD 731.59 million from April 1, 2025 to August 12, 2025. This brings total buybacks under the current program to 124,683,800 shares, representing 2.9% of the company and worth HKD 5,648.09 million. (Key Developments)
- Kuaishou Technology announced a special dividend of HKD 0.46 per share, payable on October 6, 2025. The ex-dividend date is September 9, 2025. (Key Developments)
- The board scheduled a meeting for August 21, 2025 to consider and approve the unaudited consolidated interim results for the six months ended June 30, 2025. (Key Developments)
Valuation Changes
- Fair Value has risen slightly from 87.58 to 89.78, indicating a modest upward adjustment in intrinsic valuation.
- Discount Rate has decreased slightly from 8.49% to 8.32%, reflecting marginally lower perceived risk or improved capital conditions.
- Revenue Growth projections are essentially unchanged, remaining steady at around 9.74%.
- Net Profit Margin remains stable, with an insignificant change from 15.65% to 15.65%.
- Future P/E has increased marginally from 15.59x to 15.99x, suggesting a minor adjustment in valuation multiples based on updated forecasts.
Disclaimer
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