Haitong International: KUAISHOU increases capital expenditure to capture AI opportunities, rating 'Outperform the Market'

Haitong International published a research report stating that KUAISHOU-W (01024.HK) had a total revenue of RMB 39.6 billion last year, an increase of 12% year-on-year, which was 1.8% higher than expected. The non-GAAP net profit rose 16% year-on-year to RMB 5.5 billion, exceeding expectations by 2%. To seize more opportunities brought by artificial intelligence, the company has increased its capital expenditure budget. However, management indicated that the group will maintain positive free cash flow for the entire year.

Haitong International expects the adjusted net profit for the fiscal year 2026 to be RMB 171 million, with a profit margin of 11%, a decrease of 3 percentage points year-on-year. The firm maintains a target price of HKD 74 for KUAISHOU-W, with a rating of "Outperform."