Investment Rating - The report maintains a "Buy" rating for Kuaishou-W (01024.HK) [2] Core Insights - Kuaishou achieved a record high in Daily Active Users (DAU) at 408 million, with a year-on-year growth of 5.4%. The company's revenue for Q3 2024 reached 31.1 billion yuan, reflecting an 11.4% increase year-on-year, while Non-IFRS net profit was 3.95 billion yuan, up 24.4% year-on-year [3] - The report highlights strong growth in external advertising, which has become a key driver for revenue, with online marketing revenue increasing by 20% year-on-year to 17.6 billion yuan in Q3 2024 [3] - The e-commerce segment also showed robust growth, with Gross Merchandise Volume (GMV) reaching 334.2 billion yuan, a 15% increase year-on-year, and active buyers growing by 12.2% [3] Financial Performance Summary - For 2024, the projected Non-IFRS net profits are 17.7 billion yuan, 22.6 billion yuan for 2025, and 30.2 billion yuan for 2026, with corresponding Non-IFRS PE ratios of 11.86, 9.28, and 6.94 respectively [3][6] - The company's revenue is expected to grow from 127.2 billion yuan in 2024 to 151.97 billion yuan by 2026, with a revenue growth rate of 12.1% in 2024 and gradually declining to 9.3% by 2026 [6][9] - The report indicates a significant improvement in profitability, with the return on equity (ROE) projected to rise from 21.53% in 2024 to 24% in 2026 [6]

Kuaishou Technology (OTCPK:KUASF) Q3 2024 Earnings Conference Call November 20, 2024 7:00 AM ET Company Participants Matthew Zhao - Vice President, Capital Markets & Investor Relations Cheng Yixiao - Co-Founder, Chairman & Chief Executive Officer Jin Bing - Chief Financial Officer Conference Call Participants Lincoln Kong - Goldman Sachs Thomas Chong - Jefferies Felix Liu - UBS Brian Gong - Citi Lei Zhang - Bank of America Xueqing Zhang - CICC Operator Good day, ladies and gentlemen. Thank you for standing ...

Financial Data and Key Metrics Changes - In Q3 2024, total revenue reached 31.1 billion RMB, growing by 11.4% year-over-year, driven by online marketing services and e-commerce business [12][13] - Adjusted net profit rose by 24.4% year-over-year to 3.9 billion RMB, indicating improved profitability [12][14] - Gross margin increased to 54.3%, up 2.6 percentage points year-over-year [12][14] Business Line Data and Key Metrics Changes - Revenue from online marketing services grew by 20% year-over-year to 17.6 billion RMB, representing 56.6% of total revenues [12][13] - E-commerce revenue reached 4.2 billion RMB, up 17.5% from the previous year, driven by increased GMV [12][13] - Live streaming revenue was 9.3 billion RMB, a decline of 3.9% year-over-year, but the decline is narrowing [12][13] Market Data and Key Metrics Changes - Average daily active users (DAUs) reached 408 million, a 5.4% increase year-over-year, while monthly active users (MAUs) reached 714 million, up 4.3% [2][3] - Average daily time spent per DAU was 132.2 minutes, with total user time spent increasing by 7.8% [2][3] - E-commerce GMV increased by 15.1% year-over-year to 334.2 billion RMB [6][7] Company Strategy and Development Direction - The company is focused on tech-driven, user-centric strategies to enhance user engagement and retention [2][3] - Continued investment in AI technology is a priority, with AI integrated into content creation and marketing strategies [12][20] - The company aims to expand its e-commerce capabilities by leveraging live streaming and short video content [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the short video industry, citing strong user engagement and revenue growth [11][20] - The company anticipates challenges in maintaining DAU growth due to increasing market penetration of short videos but remains optimistic about user retention strategies [21][22] - Future growth will focus on enhancing content quality and optimizing algorithms to improve user experience [22][23] Other Important Information - The company repurchased approximately HK$3.98 billion worth of shares, accounting for about 2.1% of total shares outstanding [14][15] - The overseas business saw total revenues of 1.33 billion RMB, growing by 104.1% year-over-year, with a significant reduction in operating losses [11][12] Q&A Session Summary Question: Development of the company's AI - Management discussed the advancements in AI models, particularly the Clean AI 1.5 model, which supports enhanced video capabilities and has seen significant user engagement [16][17] Question: DAU and user time spent trends - Management highlighted the strategies implemented to achieve over 400 million DAUs and emphasized the importance of content quality and algorithm efficiency in maintaining user engagement [21][22] Question: Sustainability of online marketing growth - Management noted that the growth in short play marketing spending has been significant, with expectations for continued growth driven by enhanced user experience and product optimization [23][24]

Group 1 - The core viewpoint of the article highlights Kuaishou's strong performance in Q3 2024, with total revenue increasing by 11.4% year-on-year to 31.1 billion yuan and adjusted net profit rising by 24.4% to 3.9 billion yuan [1] - The core business revenue, which includes online marketing services and other services (including e-commerce), grew nearly 20% year-on-year, with contributions from online marketing services, live streaming, and other services accounting for 56.6%, 30.0%, and 13.4% of total revenue, respectively [1] - Kuaishou's user base reached a historical high in Q3 2024, with average daily active users increasing by 5.4% year-on-year to 408 million and average monthly active users growing by 4.3% to 714 million [1] Group 2 - The total usage time on the platform showed steady growth, with a year-on-year increase of 7.3% in Q3, and the average daily live streaming and short video playback reached nearly 110 billion times [2]

Revenue Growth - Total revenue for Q3 2024 increased by 11.4% YoY to RMB 31.131 billion, with core business revenue (including online marketing services and e-commerce) growing nearly 20.0% YoY[2][13] - Domestic revenue for Q3 2024 was RMB 29.8 billion, a 9.2% YoY increase, while overseas revenue surged 104.1% YoY to RMB 1.331 billion[6][8] - Total revenue in Q3 2024 increased by 11.4% year-over-year to RMB 31.1 billion, driven by growth in online marketing services and e-commerce business[32] - Revenue for the nine months ended September 30, 2024, was RMB 91,514 million, up from RMB 80,909 million in the same period in 2023[94] - Total revenue for the nine months ended September 30, 2024, reached RMB 91,514 million, a 13.1% increase compared to RMB 80,909 million in the same period in 2023[112] Profitability - Adjusted net profit for Q3 2024 reached RMB 3.948 billion, a 24.4% YoY increase, reflecting improved profitability[2][13] - Operating profit for Q3 2024 rose 41.1% YoY to RMB 3.119 billion, driven by domestic operations[2][6] - Gross profit margin for Q3 2024 improved to 54.3%, up from 51.7% in Q3 2023[2] - Adjusted EBITDA for the first nine months of 2024 increased by 58.5% YoY to RMB 17.901 billion[4] - Net profit for Q3 2024 was RMB 3.3 billion, up from RMB 2.2 billion in Q3 2023[55] - Adjusted net profit for the nine months ended September 30, 2024, was RMB 13,015 million, compared to RMB 5,909 million in the same period in 2023[86] - Adjusted EBITDA for the nine months ended September 30, 2024, was RMB 17,901 million, up from RMB 11,292 million in the same period in 2023[86] - Gross profit for the nine months ended September 30, 2024, was RMB 50,169 million, compared to RMB 40,099 million in the same period in 2023[94] - Basic earnings per share for the nine months ended September 30, 2024, were RMB 2.64, up from RMB 0.65 in the same period in 2023[94] - Domestic operating profit for the nine months ended September 30, 2024, was RMB 11,994 million, a 67.7% increase from RMB 7,152 million in the same period in 2023[112] - Basic earnings per share for the nine months ended September 30, 2024, were RMB 2.64, a significant increase from RMB 0.65 in the same period in 2023[118] - Diluted earnings per share for the nine months ended September 30, 2024, were RMB 2.58, compared to RMB 0.63 in the same period in 2023[120] User Metrics - Average daily active users (DAUs) reached 407.5 million in Q3 2024, up 5.4% YoY, surpassing the 400 million milestone[11][13] - Average daily active users (DAU) of Kuaishou app reached 408 million, a year-on-year increase of 5.4%, and monthly active users (MAU) reached 714 million, a year-on-year increase of 4.3%[15] - Total user time spent on Kuaishou app increased by 7.3% year-on-year, with daily live streaming and short video views nearing 110 billion[15] - During the 2024 Paris Olympics, Kuaishou's Olympic-related content exposure reached 310.6 billion, with 640 million users watching the Olympics on the platform and 15.9 billion interactions[16] - Daily search volume on Kuaishou exceeded 700 million in Q3 2024, a year-on-year increase of over 20.0%, with peak daily searches surpassing 800 million[16] - E-commerce monthly active buyers reached 133 million in Q3 2024, a 12.2% year-over-year increase, driven by diversified marketing strategies[24] E-commerce Performance - E-commerce GMV for Q3 2024 grew to RMB 334.162 billion, a 15.1% YoY increase[11] - E-commerce GMV grew by 15.1% year-on-year to RMB 334.2 billion in Q3 2024, with monthly active merchants increasing by over 40.0% year-on-year[21] - Short video e-commerce GMV increased by over 40.0% year-on-year in Q3 2024, with live streaming slice contributions significantly increasing[23] - The proportion of general shelf e-commerce GMV in total e-commerce GMV increased to 27.0% in Q3 2024, with daily active merchants and buyers growing by nearly 70.0% and over 60.0% year-over-year, respectively[24] - Small and medium-sized merchants' daily GMV through live streaming increased by over 40.0% quarter-on-quarter in Q3 2024, supported by the "New Star Plan"[23] Marketing and Advertising - Online marketing service revenue reached RMB 17.6 billion in Q3 2024, a year-on-year increase of 20.0%[17] - Short drama marketing consumption increased by over 300% year-on-year in Q3 2024, driven by the In-Apps Ads (IAA) short drama model[19] - The proportion of fully automated marketing solutions (UAX) in external marketing consumption reached approximately 50.0% in Q3 2024[19] - Online marketing service revenue grew by 20.0% year-over-year to RMB 17.6 billion in Q3 2024, supported by optimized algorithms and increased client spending[33] - Online marketing services revenue for the nine months ended September 30, 2024, grew to RMB 51,799 million, a 23.0% increase from RMB 42,101 million in the same period in 2023[113] - Promotion and marketing expenses for the nine months ended September 30, 2024, increased to RMB 27,981 million, up 15.1% from RMB 24,316 million in the same period in 2023[114] Live Streaming - Live streaming revenue in Q3 2024 was RMB 9.3 billion, with a narrowing year-over-year decline, and the number of signed guilds and hosts increased by over 40.0% and 60.0%, respectively[25] - Live streaming revenue decreased by 3.9% year-over-year to RMB 9.3 billion in Q3 2024, reflecting efforts to build a healthier and more sustainable ecosystem[34] - Live streaming revenue remained stable at RMB 9.3 billion in both Q2 and Q3 2024[61] Costs and Expenses - Sales cost as a percentage of total revenue decreased to 45.7% in Q3 2024 from 48.3% in Q3 2023, with revenue sharing costs and related taxes accounting for 28.5%[37] - Sales cost increased by 5.4% from RMB 13.5 billion in Q3 2023 to RMB 14.2 billion in Q3 2024, driven by higher revenue-sharing costs, taxes, bandwidth, and server hosting expenses[38] - Gross profit rose by 17.0% from RMB 14.5 billion in Q3 2023 to RMB 16.9 billion in Q3 2024, with gross margin improving from 51.7% to 54.3%[40] - Sales and marketing expenses increased by 15.9% from RMB 8.9 billion in Q3 2023 to RMB 10.4 billion in Q3 2024, accounting for 33.3% of total revenue, up from 32.0%[42] - R&D expenses grew by 4.5% from RMB 3.0 billion in Q3 2023 to RMB 3.1 billion in Q3 2024, primarily due to higher employee benefits[44] - Sales costs increased by 2.7% from RMB 13.8 billion in Q2 2024 to RMB 14.2 billion in Q3 2024, primarily due to higher revenue-sharing costs and related taxes, as well as increased content costs[65] - Gross profit decreased by 1.3% from RMB 17.1 billion in Q2 2024 to RMB 16.9 billion in Q3 2024, with gross margin dropping from 55.3% to 54.3%[67] - Sales and marketing expenses rose by 3.2% from RMB 10.0 billion in Q2 2024 to RMB 10.4 billion in Q3 2024, accounting for 33.3% of total revenue, up from 32.4% in the previous quarter[69] - R&D expenses increased by 10.5% from RMB 2.8 billion in Q2 2024 to RMB 3.1 billion in Q3 2024, mainly due to higher employee benefits and share-based compensation[71] Overseas Operations - Overseas revenue in Q3 2024 reached RMB 1.3 billion, a 104.1% year-over-year increase, with operating losses reduced by 75.9% to RMB 153 million[28] - Overseas operating loss narrowed by 75.9% from RMB 635 million in Q3 2023 to RMB 153 million in Q3 2024, supported by rapid overseas revenue growth[50] - Overseas revenue for the three months ended September 30, 2024, was RMB 1,331 million, with a net operating loss of RMB 153 million[109] Cash Flow and Financial Position - Cash and cash equivalents as of September 30, 2024, were RMB 12.5 billion, compared to RMB 11.4 billion as of June 30, 2024[87] - Total available funds, including cash, cash equivalents, fixed deposits, financial assets, and restricted cash, were RMB 86.7 billion as of September 30, 2024, up from RMB 77.7 billion as of June 30, 2024[87] - Net cash generated from operating activities for the nine months ended September 30, 2024, was RMB 21,147 million, compared to RMB 7,598 million in the same period in 2023[89] - Net cash used in investing activities for the nine months ended September 30, 2024, was RMB 29,133 million, primarily due to investments in fixed deposits, property, equipment, and intangible assets[91] - Net cash generated from financing activities for the nine months ended September 30, 2024, was RMB 7,598 million, mainly from borrowings and notes issuance[92] - Net cash from operating activities was RMB 21,147 million for the nine months ended September 30, 2024, compared to RMB 11,876 million for the same period in 2023[102] - Net cash used in investing activities was RMB 29,133 million for the nine months ended September 30, 2024, compared to RMB 14,662 million for the same period in 2023[102] - Net cash from financing activities was RMB 7,598 million for the nine months ended September 30, 2024, compared to RMB 675 million for the same period in 2023[102] Investments and Assets - Investments in financial assets measured at fair value through profit or loss totaled RMB 20,711 million as of September 30, 2024, a significant increase from RMB 5,245 million as of December 31, 2023[123] - Total assets increased to RMB 132,095 million as of September 30, 2024, compared to RMB 106,296 million as of December 31, 2023[98] - Non-current assets rose to RMB 70,465 million as of September 30, 2024, up from RMB 45,935 million as of December 31, 2023[98] - Current assets slightly increased to RMB 61,630 million as of September 30, 2024, compared to RMB 60,361 million as of December 31, 2023[98] - Total equity increased to RMB 58,353 million as of September 30, 2024, from RMB 49,074 million as of December 31, 2023[100] - Total liabilities rose to RMB 73,742 million as of September 30, 2024, compared to RMB 57,222 million as of December 31, 2023[100] Share Repurchases and Corporate Governance - The company repurchased a total of 51,070,000 Class B shares at a total cost of HKD 2,131,261,837.49 during the period from July to November 2024[128] - The highest price paid per share was HKD 54.95 in October 2024, while the lowest price was HKD 37.70 in August 2024[128] - A total of 56,742,800 Class B shares repurchased from June to October 2024 were canceled, reducing the number of issued Class B shares by 56,742,800[128] - Reach Best Developments Limited converted 9,813,662 Class A shares to Class B shares on a one-to-one basis to maintain the voting rights ratio[128] - The company has complied with all applicable code provisions of the Corporate Governance Code, except for the separation of Chairman and CEO roles[131] - The company's unaudited interim financial information for the three and nine months ended September 30, 2024, was prepared in accordance with International Financial Reporting Standards[132] - No other significant events affecting the group occurred after September 30, 2024, up to the date of the announcement[133] Definitions and Organizational Structure - GMV (Gross Merchandise Volume) refers to the total value of all products and services transacted on the company's platform or redirected to partner platforms, excluding single transactions over RMB 100,000 and a series of transactions by a single buyer exceeding RMB 1,000,000 in a day unless settled[142] - The company's monthly active users (MAU) are calculated as the number of unique user accounts that access the application at least once per calendar month, excluding fraudulent accounts[142] - The company's organizational outline, adopted and effective on June 13, 2024, is subject to amendments[144] - Paying users are defined as user accounts that have purchased specific services at least once during a specific period[144] - The company's shares include Class A and Class B shares as per the context[144] - The company's subsidiaries are defined in accordance with the "Company Ordinance"[144] - The company's treasury shares are defined in accordance with the listing rules[144] - The company's ROI (Return on Investment) is a key metric for evaluating investment performance[144] - The company's platform includes the main station, the speed version, and the concept version of the mobile application[142] - The company's concept version of the mobile application was launched in November 2018 to explore different user needs and preferences[142]

Group 1 - Kuaishou concept stocks rose by 5.34%, ranking second in the concept sector, with 43 stocks increasing in value, including Liou Co., Yuanlong Yatu, and Sunrise Oriental hitting the daily limit [1] - The top gainers in the Kuaishou concept sector included BlueFocus, Tom Cat, and Capital Online, which rose by 16.26%, 15.20%, and 11.49% respectively [1] Group 2 - The Kuaishou concept sector saw a net inflow of 2.275 billion yuan from main funds, with 23 stocks receiving net inflows, and 8 stocks exceeding 100 million yuan in net inflows [2] - BlueFocus led the net inflow with 704 million yuan, followed by Tom Cat, Liou Co., and Tianyu Digital Science with net inflows of 464 million yuan, 353 million yuan, and 273 million yuan respectively [2] - The highest net inflow ratios were seen in Tianyu Digital Science, Guobo Co., and Liou Co., with net inflow rates of 39.43%, 27.11%, and 22.10% respectively [2]

新消费日报 11月1日讯， 今日新消费日报的主要内容有：前三季度我国社会物流总额超250万亿元；南 方航空回应机票"退高买低""阴阳价格"；机构称超8000万微信用户将成为淘宝长期用户增量。 行业要闻 前三季度国铁集团实现营业总收入9007亿元 10月31日，中国国家铁路集团有限公司披露了2024年前三季度财务决算。 前三季度，国铁集团实现营业总收入9007亿元，净利润盈利129亿元，铁路建设投资带动作用显著增 强，铁路客货运服务品质不断提升，多项运输指标创历史新高，国铁企业经营质量和效益持续提升。 前三季度，全国铁路完成固定资产投资5612亿元、同比增长10.3%，投产铁路新线1820公里，其中高铁 1210公里。国庆前夕，全国铁路营业里程突破16万公里，其中高铁超4.6万公里。 理想汽车第三季度营收429亿元 理想汽车在港交所公告，第三季度的收入总额为人民币429亿元（61亿美元），较2023年第三季度的人 民币347亿元增加23.6%，较2024年第二季度的人民币317亿元增加35.3%。第三季度净利润为人民币28 亿元，较2023年第三季度的人民币28亿元增加0.3%，较2024年第二季度的人民币11 ...

අපි ස්තූතියි ස්තූතියි ස්තූතියි ස්තූතියි ස්තූතියි 女士们先生们大家好欢迎参加快手科技2024年第四季度及全年业绩电话会议请注意本次电话会议提供管理层发言部分的英文同声翻译您需要进入英文频道以便收听第三方传译员的同声翻译请留意今天的会议正在录音现在有请公司资本市场和投资者关系副总裁Matthew Zhao先生发言 谢谢Operator,大家好,欢迎参加快手科技2024年第四季度及全年业绩电话会议。今天出席电话会议的管理层有快手科技的联合创始人、董事长兼首席执行官程一笑先生和快手科技首席财务官金炳先生。在会议开始之前,我们想提醒您今天的会议内容可能包含前瞻性陈述,其中涉及诸多风险和不确定性,实际结论和结果可能与今天讨论的结论和结果有所不同。 除法律要求外,本公司不承担任何更新此前瞻性信息的义务。有关本会议的所有重要资料,包括前瞻性陈述,请以公司公开资料或今日早些时候在公司IR网站发布的截至2024年12月31日的2024年第四季度及全年业绩公告为准。今天的电话会议中,管理层还将讨论某些非国际会计准则的财务指标,请公考虑作为补充,但不能替代根据国际会计准则编制的公司财 ...

党的二十届三中全会提出"健全促进实体经济和数字经济深度融合制度""加快构建促进数字经济发展体 制机制"等重要任务并作出部署，为持续推进我国实体经济和数字经济深度融合提供了根本遵循。数字 经济与实体经济怎样深度融合？民营企业将迎来哪些发展机遇？近日，记者就相关话题采访了快手联合 创始人杨远熙。 记者：党的二十届三中全会要求"健全因地制宜发展新质生产力体制机制""健全促进实体经济和数字经 济深度融合制度"。快手有怎样的认识和实践？ 杨远熙：作为一家科技企业，我们深刻感受到用新质生产力和科技创新推动高质量发展的价值和意义。 我国传统制造业有着巨大的优势，但也面临着新的挑战，需要在提高产品与服务质量上下功夫，而与数 字经济的融合可以创造新产品、构建新场景、释放新动能。 快手本身就是这一趋势的受益者和探索者。我们将短视频和直播与传统电商生态融合，形成了直播电商 的新业态，赋能大量制造业工厂和产业带发展。2023年，快手的电商交易总额超1.18万亿元，为大量中 小企业创造了新机会。今年上半年，快手电商交易总额达5933亿元，同比增长21%，保持着健康高速发 展的态势。 我们还将数字能力与房产、招聘、本地生活服务等融合，助 ...

Investment Rating - The report maintains a **Buy** rating on Kuaishou (1024 HK) with a target price of HK$67, implying a 41 2% expected share price return [9][24] Core Views - Kuaishou is expected to report 3Q24 results in line with consensus, with revenue growth of 11 2% YoY to RMB31 1bn and adjusted earnings of RMB3 98bn [4][5] - Ecommerce GMV growth is projected at 15% YoY in 3Q24, driving 17% YoY growth in both ecommerce commission and ecommerce ads revenue [4][6] - Non-ecommerce ads momentum is expected to sustain into 2H24, supported by rapidly growing verticals like short plays [4][6] - Kuaishou is focusing on strengthening KOL live streaming ecommerce and content to compete during the Double 11 campaign [4][16] Financial Projections - Revenue is projected to grow 12 1% YoY in 2024E to RMB127 2bn, with ecommerce and ads driving growth [13][17] - Adjusted EBITDA margin is expected to improve to 19 6% in 2024E, up from 15 3% in 2023 [13][17] - Core EPS is forecasted to grow 72 8% YoY in 2024E to RMB3 995, with further growth of 28 5% in 2025E [8][17] Strategic Focus - Kuaishou's ecommerce strategy includes strengthening top KOLs, enhancing content (short video, live streaming, text & graphics), improving customer shopping protection, and advancing shelf-based ecommerce [16] - The company is allocating more resources to top KOLs and content to strengthen its live streaming ecommerce edge during the Double 11 campaign [6][16] Valuation - The target price of HK$67 is based on a 12x 2025E adjusted EPS of HK$5 6, close to 1 standard deviation below its historical PE average [24] - The valuation implies a ~0 4x PEG ratio to the 2024-26E earnings CAGR of 26%, reflecting Kuaishou's No 2 position in the short video market and potential competition from Weixin Video Accounts [24]