Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 76.03 HKD per share, based on a 15x PE valuation for 2025 [3][10]. Core Insights - The company's AI capabilities, particularly the KuaLing model, show significant improvement, with a 195% enhancement in overall performance from version 1.5 to 1.6, indicating strong commercial potential and business empowerment [1]. - The company is experiencing healthy traffic growth, with a projected 4.01 billion daily active users (DAU) in Q4 2024, representing a year-over-year increase of 4.8% [2]. - The e-commerce sector is expected to see a 14% year-over-year growth in GMV during the Double 11 shopping festival, driven by both supply and demand factors [2]. - The advertising revenue is projected to grow by 15% year-over-year, supported by external advertising cycles [2]. Summary by Sections Revenue and Profitability - The company expects total revenue in Q4 2024 to reach approximately 357 billion CNY, reflecting a year-over-year increase of 9.6% [5]. - The adjusted net profit for Q4 2024 is estimated at around 45.4 billion CNY, with an adjusted profit margin of 12.7% [5]. - The gross margin is anticipated to improve by 1.1 percentage points year-over-year to 54.2% in Q4 2024 [5]. Financial Forecasts - The adjusted net profit forecasts for 2024, 2025, and 2026 are 175.51 billion CNY, 201.14 billion CNY, and 243.24 billion CNY, respectively [3][10]. - The company’s revenue is projected to grow from 127.19 billion CNY in 2024 to 141.03 billion CNY in 2025, and further to 153.44 billion CNY in 2026, with respective growth rates of 12.1%, 10.9%, and 8.8% [6][8]. Market Position and Competitive Landscape - The company is actively enhancing its AI capabilities and integrating external large model technologies, which are expected to improve content delivery and advertising efficiency [1]. - The report highlights the importance of the company's ongoing commercial exploration and product integration efforts, particularly in the e-commerce and advertising sectors [1][2].

Group 1 - Kuaishou-W has received net purchases from southbound funds for three consecutive days, with a cumulative net purchase amount of HKD 18.11 billion and a stock price increase of 14.65% [1] - On February 17, the total trading volume of active stocks through the Hong Kong Stock Connect reached HKD 1019.88 billion, with a net purchase amount of HKD 44.42 billion [1] - Among the active stocks on February 17, Kuaishou-W had a trading volume of HKD 36.45 billion and a net purchase amount of HKD 5.84 billion [1]

Investment Rating - The investment rating for the company is "Buy" with a target price of 68 HKD, maintaining the rating for the next 6 months [1]. Core Insights - The company's Q3 2024 performance showed steady growth in core business, with revenue reaching 31.1 billion RMB, a year-on-year increase of 11.4%, and adjusted net profit of 3.9 billion RMB, up 24.4% year-on-year [1]. - User traffic reached a record high, with daily active users (DAU) averaging 408 million, a year-on-year increase of 5.4% [1]. - The online marketing service revenue grew by 20% year-on-year to 17.6 billion RMB, driven primarily by external advertising [1]. - The company's e-commerce gross merchandise volume (GMV) increased by 15.1% year-on-year, reaching 334.2 billion RMB [1]. - The overseas business saw a significant growth of 104.1% year-on-year, with revenue reaching 1.33 billion RMB [1]. Summary by Sections Financial Performance - In Q3 2024, the company achieved operating revenue of 31.1 billion RMB, with a gross profit of 16.9 billion RMB, reflecting a 17% year-on-year increase [1]. - Sales and marketing expenses rose by 15.9% to 10.4 billion RMB, accounting for 33.3% of total revenue [1]. - Research and development expenses increased by 4.5% to 3.1 billion RMB, representing 10% of total revenue [1]. User Engagement - The average DAU/MAU for the company's application was 408 million/714 million, with DAU reaching a historical high [1]. - The average daily usage time per DAU was 132.2 minutes, a year-on-year increase of 7.3% [1]. Marketing and Advertising - The external advertising segment showed strong growth, with UAX consumption in external circulation increasing to approximately 50% [1]. - The number of active merchants in internal circulation increased by over 50% year-on-year [1]. E-commerce and Other Services - Other service revenue, including e-commerce, grew by 17.5% year-on-year to 4.2 billion RMB [1]. - The number of active buyers in e-commerce increased by 12.2% year-on-year to 133 million [1]. Live Streaming and Overseas Business - Live streaming revenue was 9.3 billion RMB, a year-on-year decrease of 3.9% [1]. - The overseas business revenue reached 1.33 billion RMB, with a significant reduction in operating losses by 75.9% [1]. Investment Outlook - The company is expected to achieve operating revenues of 127.1 billion RMB and 140.7 billion RMB for 2024 and 2025, respectively, with adjusted net profits of 17.6 billion RMB and 21.6 billion RMB [1].

Investment Rating - The investment rating for the company is "Buy" (maintained) [3] Core Insights - The company's Q3 2024 revenue reached 31.1 billion CNY, representing a year-over-year increase of 11.4%, which aligns with expectations [2] - Adjusted net profit for Q3 2024 was 3.95 billion CNY, up 24.4% year-over-year, slightly exceeding consensus estimates [2] - Daily Active Users (DAU) reached a record high of 408 million, growing 5.4% year-over-year, while Monthly Active Users (MAU) increased by 4.3% to 714 million [2] - E-commerce Gross Merchandise Volume (GMV) for Q3 2024 was 334.2 billion CNY, up 15.1% year-over-year, driven by strategic initiatives and a significant increase in new merchant registrations [2] - Online marketing revenue grew by 20.0% year-over-year to 17.63 billion CNY, primarily fueled by external marketing clients and the expansion of the In-Apps Ads short video model [2] - The company expects total revenue for 2024-2026 to be 127.29 billion CNY, 141.41 billion CNY, and 155.69 billion CNY respectively, with adjusted net profits projected at 17.64 billion CNY, 22.67 billion CNY, and 27.83 billion CNY [2] Financial Summary - Total revenue for 2023 is projected at 113.47 billion CNY, with a growth rate of 20% [6] - The company anticipates a significant increase in adjusted net profit from 10.27 billion CNY in 2023 to 17.64 billion CNY in 2024, reflecting a growth rate of 72% [6] - Earnings per share (EPS) is expected to rise from 2.36 CNY in 2024 to 6.45 CNY by 2026 [6] - The price-to-earnings (P/E) ratio is projected to decrease from 20.86 in 2024 to 6.40 by 2026, indicating improved valuation metrics over time [6]

Investment Rating - The report maintains a "Buy" rating for Kuaishou Technology (快手) [4][8] Core Views - Kuaishou's Q3 2024 revenue reached 31.131 billion RMB, a year-on-year increase of 11.4%, driven by a 20% growth in core business revenue [4][5] - The company is experiencing steady user growth, with Daily Active Users (DAU) and Monthly Active Users (MAU) reaching 408 million and 714 million respectively, reflecting year-on-year growth of 5.4% and 4.3% [5] - Kuaishou's e-commerce Gross Merchandise Volume (GMV) for Q3 2024 was 334.2 billion RMB, up 15% year-on-year, with a significant increase in active merchants [6][7] Summary by Sections Market Data - Closing price as of November 25, 2024, was HKD 46.35, with a market capitalization of HKD 1,999.35 billion [2] Financial Performance - Q3 2024 adjusted net profit was 3.948 billion RMB, a 24.4% increase year-on-year, with a profit margin of 12.7% [4] - Revenue projections for 2024-2026 have been adjusted upwards to 127.3 billion, 145.3 billion, and 160.9 billion RMB respectively [8][9] User Engagement - User engagement metrics show an average daily usage time of 132.2 minutes, with total usage time increasing by 7.3% year-on-year [5] Commercialization Progress - Online marketing revenue for Q3 2024 was 17.6 billion RMB, a 20% increase year-on-year, with significant growth in various sectors [6] - The company has launched AI applications that have rapidly gained traction, with over 5 million users and significant content generation [7] Future Outlook - The report anticipates continued user growth and commercialization in Q4 2024, with expectations of narrowing overseas losses [7][8]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 61.62 per share, based on a 14x PE valuation for 2024 [1][6][10]. Core Insights - The company's performance in Q3 2024 met expectations, with a focus on the release of synergistic effects in e-commerce across multiple domains [1][9]. - Daily Active Users (DAU) reached 408 million, showing a year-on-year increase of 5.4%, while Monthly Active Users (MAU) grew by 4.3% to 714 million [1][9]. - Advertising revenue increased by 20.0% year-on-year to CNY 176 billion, accounting for 56.6% of total revenue [1][9]. - E-commerce Gross Merchandise Volume (GMV) rose by 15.1% year-on-year to CNY 334.2 billion, with a monthly paid user count of 133 million [1][9]. Summary by Sections User Growth - DAU reached 408 million, MAU at 714 million, and average daily usage time increased by 1.8% to 132 minutes [1][9]. - The company expects DAU to maintain slight growth in Q4 2024, around 400 million [1][9]. Advertising Performance - Q3 2024 advertising revenue was CNY 176 billion, with a year-on-year growth of 20.0% [1][9]. - The internal advertising cycle showed stable growth, while external advertising growth was significant, particularly in media and local life sectors [1][9]. E-commerce Insights - E-commerce GMV grew by 15.1% year-on-year to CNY 334.2 billion, with a monthly paid user count of 133 million [1][9]. - The company anticipates a 14% year-on-year growth in GMV for Q4 2024, driven by e-commerce commissions [1][9]. Financial Performance - Adjusted net profit for Q3 2024 reached CNY 39.5 billion, with a gross margin of 54.3% [1][9]. - The report projects adjusted net profits of CNY 175.51 billion for 2024, with a slight upward revision due to better-than-expected cost control [6][10].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 61.62 [1] Core Views - The company achieved its DAU target of 400 million, with DAU increasing by 5.4% YoY to 408 million and MAU growing by 4.3% YoY to 714 million in 3Q24 [1] - User engagement improved, with daily average time spent per user increasing by 1.8% YoY to 132 minutes, and total user time spent growing by 7.3% YoY [1] - Advertising revenue grew by 20.0% YoY to RMB 17.6 billion, accounting for 56.6% of total revenue, with significant growth in external loop advertising, particularly in short drama marketing [1] - E-commerce GMV increased by 15.1% YoY to RMB 334.2 billion, with monthly paying users (MPU) reaching 133 million, up 10.8% YoY [1] - Live streaming revenue declined by 3.9% YoY to RMB 9.3 billion, better than expected, with the number of signed agencies and hosts increasing by over 40% and 60% YoY, respectively [1] - Adjusted net profit for 3Q24 reached RMB 3.95 billion, with a gross margin of 54.3%, up 2.6 percentage points YoY [1] Financial Forecasts - Revenue is expected to grow by 12.1% YoY in 2024E, reaching RMB 127.2 billion, with a gross margin of 54.7% [6] - Adjusted net profit for 2024E is forecasted at RMB 17.55 billion, with a net margin of 13.8% [6] - The company is valued at 14x PE for 2024E, with a target valuation of RMB 245.7 billion (HKD 265.8 billion) [6][10] Operational Highlights - The company leveraged its position as the official broadcaster for the 2024 Paris Olympics, with related content exposure reaching 310.6 billion views and 640 million users engaging with Olympic content [1] - Search functionality saw significant growth, with MAU exceeding 500 million and daily searches increasing by 20% YoY to over 700 million, peaking at over 800 million searches per day [1] - E-commerce initiatives, including the "818" promotion, saw GMV grow by over 24% YoY, with short video-driven GMV increasing by over 40% YoY [1]

Investment Rating - The report maintains a "Buy" rating for Kuaishou Technology [10] Core Insights - Kuaishou's Q3 2024 revenue reached 31.131 billion CNY, a year-on-year increase of 11.4%, with Non-GAAP net profit at 3.948 billion CNY, up 24.4% [6][8] - The company's online marketing service revenue grew by 20.0% year-on-year, contributing 56.6% to total revenue, driven by AI optimization in advertising [6][7] - Daily active users (DAU) surpassed 400 million for the first time, with a year-on-year growth of 5.4% [7] Summary by Sections Revenue Performance - Kuaishou's Q3 2024 online marketing service revenue was 17.634 billion CNY, up 20.0% year-on-year, while live streaming revenue was 9.338 billion CNY, down 3.9% [6][7] - Other services, including e-commerce, generated 4.159 billion CNY, a 17.5% increase year-on-year, with GMV reaching 334.2 billion CNY, up 15.1% [6][7] User Metrics - Average daily active users reached 408 million, with average monthly active users at 714 million, reflecting a year-on-year increase of 4.3% [7] - In overseas markets, DAU in Brazil grew by 9.7% year-on-year [7] Profitability - Kuaishou's gross margin improved to 54.3%, with an adjusted net profit margin of 12.7% [7] - R&D expenses increased by 4.5% to 3.1 billion CNY, while sales and marketing expenses rose by 15.9% to 10.4 billion CNY [7] Future Outlook - Revenue projections for 2024 and 2025 are estimated at 127.1 billion CNY and 139.7 billion CNY, respectively, with Non-GAAP net profits of 17.7 billion CNY and 21.7 billion CNY [8]

Investment Rating - The report maintains a "Buy" rating for Kuaishou Technology (1024.HK) with a target price of HKD 60.3 [1][46]. Core Insights - Kuaishou's total revenue for Q3 2024 reached RMB 31.1 billion, reflecting a year-on-year growth of 11.4%, slightly above market expectations [1][20]. - Adjusted net profit for Q3 2024 was RMB 3.95 billion, slightly exceeding expectations, with a year-on-year growth of 24.4% [1][25]. - The marketing expense ratio increased due to promotional activities, while the company continues to focus on cost reduction and efficiency improvements [1][26]. Financial Performance - Q3 2024 revenue breakdown: - Online marketing revenue: RMB 17.6 billion, up 20% year-on-year, accounting for 56.6% of total revenue [1][20]. - Live streaming rewards revenue: RMB 9.3 billion, down 3.9% year-on-year, accounting for 30% [1][20]. - Other services (mainly e-commerce): RMB 4.16 billion, up 17.5% year-on-year, accounting for 13.4% [1][20]. - Gross margin for Q3 2024 was 54.3%, up 2.6 percentage points year-on-year [1][25]. User Growth and Engagement - Daily Active Users (DAU) reached 408 million, growing 5.4% year-on-year, while Monthly Active Users (MAU) reached 714 million, growing 4.3% year-on-year [1][32]. - Average daily usage time per DAU was 132.2 minutes, up 1.8% year-on-year [1][32]. Commercialization and Business Segments - Online marketing revenue continues to grow, driven by AI and algorithm improvements, with external marketing services showing significant growth [1][35]. - E-commerce revenue showed stable growth, with Gross Merchandise Volume (GMV) reaching RMB 334.2 billion, up 15.1% year-on-year [1][38]. - Live streaming rewards revenue decline is slowing, with a focus on diversifying content and enhancing the live streaming ecosystem [1][44]. Valuation and Future Outlook - The adjusted net profit forecast for 2024 has been slightly raised to RMB 17.6 billion, while forecasts for 2025 and 2026 have been lowered due to increased competition and marketing expenses [1][46]. - The report anticipates continued growth in user engagement and a healthy ecosystem, maintaining a target valuation multiple for different business segments [1][46].

Investment Rating - The report maintains a "Buy" rating for the company [3][4]. Core Insights - The company's overall performance met expectations, with Q3 2024 total revenue reaching 31.131 billion RMB, a year-on-year increase of 11.4%, slightly above Bloomberg's consensus estimate of 30.030 billion RMB, driven by growth in online marketing services and other services [3]. - Adjusted net profit for Q3 2024 was 3.948 billion RMB, up 24.4% year-on-year, also slightly exceeding Bloomberg's consensus estimate of 3.909 billion RMB, with an adjusted net profit margin of 12.7% [3]. - Daily active users (DAU) surpassed 400 million, reaching 407.5 million, a year-on-year increase of 5.4%, with average daily usage time per user at 132 minutes [3]. - The online marketing services segment showed strong performance, with revenue of 17.634 billion RMB in Q3 2024, a year-on-year increase of 20.0%, accounting for 56.6% of total revenue [3]. - E-commerce gross merchandise volume (GMV) reached 334.2 billion RMB in Q3 2024, a year-on-year increase of 15.1%, with active buyers increasing by 12.2% [3]. Financial Summary - For the fiscal year 2023, the company reported revenue of 113.47 billion RMB, with a projected revenue of 127.23 billion RMB for 2024, reflecting a growth rate of 12.1% [2]. - The gross profit margin is expected to improve from 50.6% in 2023 to 54.6% in 2024 [2]. - Adjusted net profit is forecasted to grow from 10.27 billion RMB in 2023 to 17.71 billion RMB in 2024, with an adjusted net profit margin increasing from 9.1% to 13.9% [2].