| Valuation method | Value, HK$ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 83.30 | 4 |
| Intrinsic value (DCF) | 165.19 | 106 |
| Graham-Dodd Method | 34.20 | -57 |
| Graham Formula | 73.80 | -8 |
Kuaishou Technology is a leading Chinese technology company operating one of China's premier short-video and live-streaming platforms. Founded in 2011 and headquartered in Beijing, Kuaishou has evolved into a comprehensive social entertainment ecosystem through its flagship Kuaishou app, offering short-form video content, live streaming, and social networking features. The company has strategically expanded into live-streaming e-commerce, becoming a significant player in China's social commerce landscape where content directly drives transactions. Operating in the Internet Content & Information industry within the Communication Services sector, Kuaishou generates revenue through multiple streams including virtual gifting from live streaming, online marketing services, and e-commerce commissions. The platform also extends to gaming through in-house and third-party game development, information aggregation via Kuaikandian, and content creation tools like Yitian Camera and Kmovie. With its deep penetration in lower-tier Chinese cities and continued innovation in social commerce integration, Kuaishou represents a critical component of China's digital content and e-commerce infrastructure.
Kuaishou presents an attractive investment opportunity with strong fundamental performance, though it operates in a highly competitive and regulated market. The company demonstrated robust financial health in its latest reporting period with HKD 126.9 billion in revenue and net income of HKD 15.3 billion, representing a significant turnaround to profitability. With a market capitalization exceeding HKD 325 billion and positive operating cash flow of HKD 29.8 billion, Kuaishou has achieved scale and monetization efficiency. The company's beta of 1.092 indicates moderate volatility relative to the market. Key investment risks include intense competition from ByteDance's Douyin, regulatory pressures in China's tech sector, and the capital-intensive nature of content and technology development. However, Kuaishou's established user base, diversified revenue streams spanning advertising, live streaming, and e-commerce, and its strategic position in China's growing digital economy provide a solid foundation for continued growth despite these challenges.
Kuaishou operates in the intensely competitive Chinese short-video and live-streaming market, where it maintains the second-largest market position behind ByteDance's Douyin. The company's competitive advantage stems from its deep penetration in lower-tier cities and stronger community engagement features, which have created a distinctive 'old iron' culture that fosters higher user loyalty and engagement compared to more metropolitan-focused platforms. Kuaishou's integration of e-commerce into its live-streaming ecosystem has proven particularly effective, creating a seamless path from content discovery to transaction completion. The platform's algorithm, which emphasizes social relationships and community content rather than purely popularity-based distribution, differentiates it from competitors and supports stronger creator-viewer connections. However, Kuaishou faces significant scale disadvantages compared to Douyin's massive user base and superior monetization capabilities. The company also competes with broader entertainment platforms like Bilibili for user time and with e-commerce giants like Alibaba and Pinduoduo in the live-streaming commerce space. Regulatory pressures from Chinese authorities regarding content, data privacy, and antitrust concerns represent ongoing competitive challenges that affect all major players in the sector equally. Kuaishou's continued investment in technology, content ecosystem development, and e-commerce infrastructure will be critical to maintaining its competitive position against well-funded rivals.