Kingwu Financial News | Soochow Securities research indicates that the revenue of Kuaishou-W (01024) in Q3 24 was 31.13 billion yuan, yoy +11.4%, in line with expectations. The adjusted net income was 3.948 billion yuan, yoy +24.4%, in line with expectations. The adjusted net profit margin was 12.7%, yoy +1.3pct, in line with expectations.

The bank pointed out that in Q3, the company continued to deepen the integration and application of large models in content generation, content understanding, and recommendations: materials consumed daily by marketing customer AIGC exceed 200 million yuan; KeLin AI has generated over 51 million videos and over 0.15 billion images cumulatively. In September, MAU exceeded 1.5 million, and user retention rate gradually improved. The bank expects AI to empower the company's content ecosystem, drive traffic growth, and systematically improve monetization efficiency.

The bank stated that the company's performance meets the bank's expectations, but considering the existing uncertainties in consumer sector, the bank has adjusted the company's adjusted net income for 2024-2026 from 17.5/24.2/31.6 billion yuan to 17.6/22/26.2 billion yuan, corresponding to PE ratios of 10/8/7x, maintaining a "buy" rating.