Xiaomo: Raising the Kuaishou-W (01024) target price to HK$71, reaffirming China's first choice for digital entertainment

The Zhitong Finance App learned that J.P. Morgan Chase released a research report saying that Kuaishou-W (01024) Keling's AI revenue in the first quarter drove the bank to slightly raise its target price from HK$70 to HK$71, maintaining a “gain” rating. Kuaishou's stock price rose 5% yesterday after the results were announced due to management's expectations that the year-on-year growth in online advertising revenue in the second quarter of 2025 will accelerate to double digits, and Keling's monetization process will accelerate.

The bank raised Keling's annual revenue forecast from 450 million yuan to 750 million yuan. At the same time, Kuaishou's online advertising revenue is expected to accelerate further in the second half of the year, driving profit growth of 27% and 23% year-on-year in the third and fourth quarters, respectively. It was reiterated that Kuaishou is its first choice for digital entertainment in China, mainly because Kuaishou is less unified in the fields of advertising and e-commerce, and it is expected that it will grow faster than the overall advertising market in the next few years.