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Kuaishou Technology Class B
(1024)
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Rating:66Neutral
Price Target:
HK$36.00
▲(7.08% Upside)
Action:Reiterated
Date:09/06/26
The score is driven by solid fundamental performance (profitability turnaround, strong TTM growth, manageable leverage) and supportive valuation (low P/E and meaningful dividend). Offsetting these are weak technicals (downtrend across moving averages with negative MACD) and earnings-call guidance pointing to H2 revenue pressure and margin headwinds from elevated AI investment, despite strong cash resources and continued shareholder returns.
Positive Factors
Profitability turnaround and revenue growth
Profitability has shifted from losses in 2021–2022 to consistently positive earnings since 2023, while TTM revenue grew 23.5%. This combination indicates stronger monetization and operating execution, giving the platform a more durable earnings base even as margins have recently moderated.
Negative Factors
Margin compression
Gross margin fell to 51.6% from 55.7%, while cost of revenue rose 10.7% year over year. Sustained margin erosion would reduce the earnings benefit of platform growth and leave less operating flexibility, particularly as the company continues funding new products and services.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability turnaround and revenue growth
Profitability has shifted from losses in 2021–2022 to consistently positive earnings since 2023, while TTM revenue grew 23.5%. This combination indicates stronger monetization and operating execution, giving the platform a more durable earnings base even as margins have recently moderated.
Read all positive factors
Kuaishou Technology Class B (1024) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$146.98B
Dividend Yield3.42%
Average Volume (3M)51.68M
Price to Earnings (P/E)7.9
Beta (1Y)1.71
Revenue Growth11.31%
EPS Growth0.14%
CountryHK
Employees24,202
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)3.63
Shares Outstanding3,664,102,300
10 Day Avg. Volume52,572,907
30 Day Avg. Volume51,683,830
Financial Highlights & Ratios
PEG Ratio0.71
Price to Book (P/B)3.18
Price to Sales (P/S)1.77
P/FCF Ratio20.31
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$51.93Price Target Upside54.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering23
EPS Forecast (FY)1.78
Revenue Forecast (FY)HK$138.71B
Kuaishou Technology Class B Business Overview & Revenue Model
Company Description
Established in 2011 and headquartered in Beijing, China, Kuaishou Technology operates as an investment holding company primarily focused on live streaming, online marketing, and various other services across the People's Republic of China. The com...
How the Company Makes Money
Kuaishou primarily makes money by monetizing traffic and user engagement on its content platforms. Key revenue streams include: (1) Online marketing/advertising: Kuaishou sells advertising inventory and marketing solutions to brands and merchants,...
Kuaishou Technology Class B Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 24, 2026
Earnings Call Sentiment Neutral
The call presents a mixed but balanced picture: significant strategic and operating progress on AI (Kling AI commercialization, internal AI adoption, product launches), solid user scale, healthy cash reserves and continued shareholder returns are clear positives. However, the financials show modest top-line growth (1.4% YoY), margin compression (gross margin down ~4.1 ppt), and materially higher R&D spend (+34.7% YoY) that weigh on near-term profitability. Management signaled expected H2 revenue pressure and ongoing AI investments. Overall, strengths in AI momentum and cash position are offset by limited revenue growth and margin pressure, leading to a neutral stance.Positive Updates
Large and Stable User Base
Average DAUs reached 412.5 million and average MAUs reached 797.3 million in Q2, reflecting continued scale and engagement on the Kuaishou app.
Negative Updates
Modest Overall Revenue Growth
Total revenues grew only 1.4% year-over-year to RMB 35.5 billion, indicating limited top-line momentum amid macro and industry headwinds.
Read all updates
Q2-2026 Updates
Positive
Negative
Large and Stable User Base
Average DAUs reached 412.5 million and average MAUs reached 797.3 million in Q2, reflecting continued scale and engagement on the Kuaishou app.
Read all positive updates
Company Guidance
Management said they expect near‑term revenue pressure and continued heavy AI investment to weigh on H2 profitability, but will pursue prudent financial discipline (cost reductions, efficiency improvements), keep investing in AI and aim to maintain positive group‑level free cash flow in H2 while increasing total shareholder returns for 2026 versus last year. Key Q2 metrics cited: total revenue RMB35.5bn (+1.4% YoY), adjusted net profit RMB3.9bn (adjusted net margin 11%), group net profit RMB3.2bn, online marketing services RMB20.6bn (+4.4%), other services (e‑commerce + Kling AI) RMB6.2bn (+18.5%), Kling AI revenue >RMB850m (>200% YoY), live streaming RMB8.7bn, cost of revenue RMB17.2bn (48.4% of revenue), gross profit RMB18.3bn (gross margin 51.6% vs 55.7% a year ago), selling & marketing RMB9.9bn (27.9% of revenue), R&D RMB4.6bn (+34.7%, 12.9% of revenue), admin RMB895m, cash & equivalents/time deposits/financial assets/restricted cash RMB121.3bn (June 30), net cash from operations Q2 RMB5.9bn, capex front‑loaded in H1, share repurchases ~HKD1.97bn (~43.3m shares, ~1% outstanding) and HKD3bn dividends YTD.Kuaishou Technology Class B Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 143.91B | 142.78B | 126.90B | 113.47B | 94.18B | 81.08B |
| Gross Profit | 74.90B | 78.55B | 69.29B | 57.39B | 42.13B | 34.03B |
| EBITDA | 21.52B | 21.80B | 17.74B | 14.59B | -5.41B | -71.65B |
| Net Income | 15.73B | 18.62B | 15.34B | 6.40B | -13.69B | -78.08B |
Balance Sheet | ||||||
| Total Assets | 199.73B | 164.57B | 139.87B | 106.30B | 89.31B | 92.52B |
| Cash, Cash Equivalents and Short-Term Investments | 80.61B | 62.42B | 51.50B | 48.86B | 35.41B | 45.28B |
| Total Debt | 39.03B | 34.95B | 29.53B | 15.72B | 12.93B | 13.61B |
| Total Liabilities | 117.47B | 84.96B | 77.85B | 57.22B | 49.47B | 47.42B |
| Stockholders Equity | 82.22B | 79.59B | 62.00B | 49.06B | 39.83B | 45.09B |
Cash Flow | ||||||
| Free Cash Flow | 3.74B | 12.45B | 21.72B | 15.88B | -2.42B | -13.28B |
| Operating Cash Flow | 23.98B | 27.00B | 29.79B | 20.78B | 2.20B | -5.52B |
| Investing Cash Flow | -43.83B | -26.36B | -36.68B | -19.86B | -17.55B | -18.36B |
| Financing Cash Flow | 19.46B | -1.88B | 6.71B | -1.36B | -4.48B | 36.50B |
Kuaishou Technology Class B Technical Analysis
Negative
33.62
Price Trends
40.66
Negative
43.07
Negative
53.86
Negative
Market Momentum
-2.47
Positive
34.37
Neutral
23.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1024, the sentiment is Negative. The current price of 33.62 is below the 20-day moving average (MA) of 36.50, below the 50-day MA of 40.66, and below the 200-day MA of 53.86, indicating a bearish trend. The MACD of -2.47 indicates Positive momentum. The RSI at 34.37 is Neutral, neither overbought nor oversold. The STOCH value of 23.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1024.
Kuaishou Technology Class B Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | HK$3.99T | 14.64 | 20.47% | 1.20% | 15.97% | 18.45% | |
73 Outperform | HK$98.43B | 9.73 | 11.23% | 2.89% | 16.05% | -6.93% | |
69 Neutral | HK$13.12B | 5.08 | 8.15% | 8.95% | 1.85% | -14.40% | |
66 Neutral | HK$146.98B | 7.92 | 19.76% | 3.42% | 11.31% | 0.14% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | HK$1.83B | 10.12 | 2.82% | 5.15% | -23.74% | -54.08% | |
52 Neutral | HK$1.35B | -1.95 | -7.89% | ― | -13.13% | -332.19% |
* Communication Services Sector Average
HK:1024
Kuaishou Technology Class B
33.66
-35.10
-51.05%
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442.80
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-38.50%
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Kuaishou Technology Class B Corporate Events
Kuaishou’s Beijing Kling Attracts New AI-Linked Capital and Adjusts Investor Subscriptions
Aug 31, 2026
Kuaishou Technology, through its investment vehicle Beijing Kling, has brought in two new institutional investors, China Artificial Intelligence Industry Investment Fund Partnership and Charoen Pokphand Robot Limited, as additional investors under...
Kuaishou posts revenue growth but sharp profit decline in first half of 2026
Aug 19, 2026
Kuaishou Technology reported unaudited interim results for the three and six months ended June 30, 2026, showing modest revenue growth but weaker profitability. Group revenues rose 1.4% year-on-year in the second quarter to RMB35.54 billion and 2....
Kuaishou Sets Board Meeting to Approve 2026 Interim Results
Jul 31, 2026
Kuaishou Technology has scheduled a board meeting for August 19, 2026, to review and approve the group’s unaudited consolidated interim results for the six months ended June 30, 2026. The timing of the meeting signals that investors will soo...
Kuaishou Grants 8.7 Million RSUs in Broad Employee Incentive Move
Jul 17, 2026
Kuaishou Technology has granted 8,737,068 restricted share units to eligible employees under its 2023 Share Incentive Scheme, with each RSU entitling the holder to one share or cash equivalent at no purchase price upon vesting. The RSUs carry vest...
Tencent Cuts Kuaishou Stake as Video Platform Presses Ahead With Share Buybacks
Jul 6, 2026
Tencent Holdings has sold 272,947,700 Class B shares of Kuaishou Technology via an off-market block trade to independent third-party purchasers, cutting its stake from about 15.68% to 9.37% and relinquishing its status as a substantial shareholder...
Kuaishou Brings in $2.8 Billion for Kling AI and Launches New Equity Schemes
Jul 2, 2026
Kuaishou Technology has agreed a major capital increase for its AI subsidiary Beijing Kling, with 36 investors committing RMB19,047.10 million (USD2,794.59 million), and room for further commitments up to a RMB20,447.10 million cap. The deal, stru...
Kuaishou Shareholders Approve Dividend, Buyback Mandate and Board Slate at AGM
Jun 25, 2026
Kuaishou Technology reported that all ordinary and special resolutions at its 25 June 2026 annual general meeting were approved by poll, including adoption of the 2025 audited financial statements and a final dividend of HK$0.69 per share. Shareho...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.