Kuaishou (01024) rose nearly 4% at midday, with the momentum of the Magnetics Conference releasing AI commercial energy. In the past four days, the company has repurchased more than HK$760 million.

On April 1st, Kuaishou-W (01024) opened high and rose steadily in the morning session, with the intraday increase exceeding 4% at one point. By the midday closing, it closed at HK$56.5, with an increase of 3.96%. On the news front, on March 31st, the Kuaishou 2025 Magnetic Force Conference was held in Changsha. The conference focused on "Creating New Business." Wang Jianwei, Senior Vice President of Kuaishou, Head of the E-commerce Business Division and Head of the Commercialization Business Division, stated that based on the platform's thriving content and business ecosystem, as well as the comprehensive layout of AI capabilities, Kuaishou is able to reshape the field of commercial marketing in AIGC content production, deployment agents, marketing recommendation models, and bidding reasoning models. In terms of AIGC content production, in Q4 2024, Kuaishou's AIGC short video marketing materials and virtual DIGIHUMAN live broadcasting solutions had a daily consumption exceeding 30 million. In terms of intelligent deployment agents, in early 2024, Kuaishou launched the fully automatic deployment (UAX) capability based on large model reasoning. Currently, UAX's customer penetration rate is close to 60%, and the success rate of cold start deployment has increased by 25%. In addition, Kuaishou's e-commerce-focused platform has been upgraded to version 4.0. Data shows that the platform's promotion agent has boosted over 60% of natural GMV growth for merchant advertisers. Furthermore, Kuaishou's marketing recommendation model, through cognitive decision learning, enables the models to gradually break down and summarize complex issues like humans, allowing precise reasoning between user natural behaviors and business behaviors to achieve efficient matching of user purchase intent and marketing selling points. The fourth-generation intelligent pricing system of Kuaishou has evolved into a "smart brain" with strategic thinking, showing significant improvements in cold start, cost stability, and running volume. Data shows that in 2024, Kuaishou's commercial revenue increased by over 20% year-on-year to 72.4 billion, with a growth of over 50% in the number of collaborating customers. In addition, the application of AI technology has deeply penetrated into key businesses like content consumption, e-commerce, local leads, and branding. Data from Q4 2024 shows rapid growth in content consumption industries on Kuaishou, with commercial consumption of short films increasing by over 300% year-on-year. The peak daily consumption of short films has exceeded 30 million, and that of mini-games has crossed 12 million. Regarding e-commerce operations, the conference revealed that in the past year, the cross-platform turnover of Kuaishou's e-commerce has grown by 61.3% year-on-year, with daily average buyers increasing by 65.7% and daily average sellers increasing by 119%. The continuous prosperity of the shelves is bringing new business increments to the platform and merchants. In terms of local leads, with the instant interaction and deep conversion of smart customer service, the business intent of local leads industry users has grown by over 10%, and the conversion cost of leads has decreased by 11%In Q4 2024, the average monthly paying users for local life services have increased by 52%. Meanwhile, Kuaishou has introduced DeepSeek tuning and industry optimization, significantly improving smart customer service in private messaging relevance, objectivity, and fluency, reducing the single lead cost for local business customers by 19% and increasing store promotion to store rate by 20%. Wang Jianwei said that with the continuous development and application of generative AI technology, Kuaishou is empowering AI in the platform's content and business ecosystem, helping customers grow through refined service capabilities, accelerating the creation of a next-generation AI intelligent business engine with magnetic power. Moreover, from March 26 to March 31, Kuaishou repurchased shares for four consecutive trading days, with a total investment exceeding HK$760 million. Since the beginning of 2025, it has repurchased more than HK$1.18 billion. Analysts pointed out that this move demonstrates the management's confidence in the implementation of the AI strategy and long-term value. The market is also optimistic about AI's continuous drive for Kuaishou's business growth and ecosystem reconstruction. Huatai analysis suggests that AI will empower online marketing business development in improving advertising material production efficiency (such as Magnetic Force Initiative) and optimizing precise deployment (such as UAX), with the commercial income potential of its video generative models beginning to be realized. Zhongtai International predicts that AI will gradually generate substantial income in the 2025 fiscal year and empower the development of existing businesses. According to Kuaishou's latest financial report data, in 2024, Kuaishou's total annual revenue increased by 11.8% year-on-year to 126.9 billion, with a year-on-year growth of 72.5% in adjusted net profit to reach 17.7 billion.