By Jiahui Huang

Kuaishou Technology's shares rose in Hong Kong after the Chinese short-video company swung to a profit in the third quarter on higher revenue and lower expenses.

The stock rose as much as 5.4% in Wednesday morning trade and was recently 3.0% higher at 60.30 Hong Kong dollars (US$7.73).

Kuaishou reported a third-quarter net profit of 2.18 billion yuan ($306.7 million), compared with a loss of CNY2.71 billion a year earlier, as increased traffic on its livestreaming platform boosted its core e-commerce revenue. Its total revenue rose 21% to CNY 27.95 billion.

The company's revenue was largely in line with market expectations, Nomura analyst Jialong Shi said in a research note.

Shi believes Kuaishou's fourth-quarter guidance for a 15% on-year rise in revenue was in line with market estimates of a 16% growth, but notes potential risks from intensifying competition with ByteDance's Douyin, the Chinese version of TikTok . As a result, Nomura maintains its earnings forecasts for the fourth quarter and 2023.

Kuaishou also said it has completed the first phase of the construction of its new in-house data center for big data and artificial intelligence to support its operations and lower operating expenses.

Write to Jiahui Huang at

(END) Dow Jones Newswires

11-21-23 2220ET