Lyon: Raise KUAISHOU-W (01024) target price to 85 Hong Kong dollars, expected last quarter adjusted net profit to increase by 16% year-on-year.

Lyon released a research report stating that it is expected that KUAISHOU-W (01024) will see a 10% year-on-year increase in total revenue in the fourth quarter of 2025 to 38.8 billion RMB, while adjusted net profit is expected to rise by 16% to 5.4 billion RMB. The bank raised its forecast for the company's adjusted net profit for 2026/27 by 2%, and raised the target price from 83 Hong Kong dollars to 85 Hong Kong dollars, reiterating its outperform rating. The bank stated that the revenue performance of Kuaishou's subsidiary, Ku Ling AI, may continue to exceed expectations, believing that the platform has significant cost advantages and that its user base and revenue growth momentum should continue to accelerate.