Key Takeaways
Western Securities maintained its “Buy” rating on Kuaishou Technology (01024) after the short-video company posted a 21 percent increase in net profit for 2025, driven by steady user growth and the rapid monetization of its artificial intelligence products.
The firm’s analysts said generative AI applications are expected to provide new growth for the company, citing the rapid commercialization of the Keling video model. Kuaishou’s board announced on May 12 that it was evaluating a potential restructuring of the Keling AI business, a move that could involve raising external capital.
For the full year 2025, Kuaishou reported revenue of 142.78 billion yuan, a 13 percent increase from the prior year, while net profit grew 21 percent to 18.62 billion yuan. The fourth quarter showed accelerating profitability, with net income rising 32 percent year-over-year to 5.23 billion yuan.
The company’s Keling AI business has become a significant focal point for investors. The unit generated 340 million yuan in revenue in the fourth quarter of 2025 and, as of January 2026, achieved an annualized revenue run rate exceeding $300 million. Western Securities noted that Kuaishou’s AI-powered marketing solutions have effectively improved conversion efficiency for its clients.
The growth in AI complements the steady performance of Kuaishou’s core business. In the fourth quarter, daily active users (DAUs) grew 1.7 percent to 408 million, while e-commerce gross merchandise value (GMV) increased 12.9 percent to 521.8 billion yuan.
The potential for a separate valuation of the Keling AI assets presents a key catalyst for the stock. A restructuring or spin-off could allow the market to better price the high-growth AI segment separately from the mature social media operations. Investors will be closely watching for further announcements from the board regarding the strategic review of the AI business.
This article is for informational purposes only and does not constitute investment advice.
