Investment Value and Valuation Analysis of Kuaishou

Abstract

As a leading Chinese short-video platform, Kuaishou has established unique competitive barriers based on its "laotie culture" and the grassroots foundation of its market. However, the company faces many challenges, especially from fierce competition with Douyin, inefficient monetization, and a highly unbalanced user base structure, reflected in its insufficient penetration in tier-1/2 cities. This paper analyzes the investment value of Hokusai through Porter's Five Forces, SWOT, and financial analysis, revealing that the company returned to profit in 2023 and that its revenue growth shows a good trend. Based on the analysis, four aspects of the company's key development strategy are proposed: (1) using AI to improve commercialization efficiency, (2) adopting a multi-layered content strategy to improve the user structure, (3) integrating the e-commerce supply chain, (4) enhancing the efficiency of refined operations. The research results of this paper provide a valuable reference for the strategic optimization of Kuaishou and for investors' decision-making.