Daiwa downgraded KUAISHOU's target price to 63 yuan as traditional business faces pressure and AI investment increases

Daiwa Research Report indicates that Kuaishou (01024.HK) will have steady performance in the fourth quarter of 2025, in line with market expectations. However, the pressure on traditional business and the expansion of AI investments have led the firm to lower its revenue growth forecast for 2026 from 8% to 4%, and to reduce its adjusted net profit forecast from RMB 25 billion to RMB 17 billion. In a challenging outlook, Kuaishou's AI remains a key upward variable, and the firm expects its monetization momentum and product leadership to remain unchanged.

The firm has lowered its earnings per share forecast for 2026 to 2027 by approximately 30% to 31% to reflect the weakening trend in traditional business and the significant increase in AI investments. It reiterates a "Buy" rating, with the target price reduced from HKD 95 to HKD 63