Haitong International: Kuaishou increases capital expenditure budget to capture AI opportunities, rating "outperform the market"

Guotai Junan International released a research report stating that last year, Kuaishou's total revenue increased by 12% year-on-year to 39.6 billion yuan, 1.8% higher than expected; non-GAAP net profit increased by 16% year-on-year to 5.5 billion yuan, 2% higher than expected. To seize more opportunities brought by artificial intelligence, the company increased its capital expenditure budget. Management stated that the group will maintain positive free cash flow for the whole year. The bank maintains Kuaishou's target price at 74 Hong Kong dollars and rates it as "outperforming the market".