Investment Rating - The report maintains a "Recommended" investment rating for Kuaishou-W (01024.HK) with a target price of HKD 62.12, compared to the current price of HKD 39.40 [2]. Core Views - The company reported a total revenue of RMB 30.975 billion for Q2 2024, representing a year-over-year increase of 11.6%. The gross margin improved to 55.3% from 50.2% in the same period last year, and net profit surged by 168.7% to RMB 3.980 billion [2]. - Kuaishou continues to enhance its operational strategies, focusing on high-quality user growth and maintaining a solid user base. Daily active users (DAU) reached 395 million, up 5.1% year-over-year, while monthly active users (MAU) reached 692 million, up 2.7% year-over-year [2]. - The company's advertising revenue for Q2 2024 was RMB 17.52 billion, a 22.1% increase year-over-year, driven by significant growth in external advertising, particularly in media, e-commerce, and local services [2]. - Kuaishou's e-commerce gross merchandise volume (GMV) reached RMB 305.3 billion, reflecting a 15% year-over-year increase, with active buyers growing by 14.1% to 131 million [2]. - The adjusted net profit for Q2 2024 was RMB 4.679 billion, marking a 73.7% increase year-over-year, with an adjusted net profit margin exceeding 15% [2]. - The company aims for a mid-term adjusted net profit margin target of 20%, supported by improved revenue structure and operational efficiency [2]. Financial Summary - Total revenue projections for 2024-2026 are adjusted to RMB 127.3 billion, RMB 142.6 billion, and RMB 156.4 billion, with year-over-year growth rates of 12.2%, 11.9%, and 9.7% respectively [2]. - The forecast for net profit attributable to shareholders is revised to RMB 17.6 billion, RMB 22.7 billion, and RMB 28.3 billion for the same period, with growth rates of 71.5%, 28.9%, and 24.8% respectively [2]. - The report employs a sum-of-the-parts (SOTP) valuation method, estimating a target market capitalization of HKD 270.4 billion for 2024 [2].

Financial Performance - Total revenue for Q2 2024 reached RMB 30,975 million, representing an 11.6% increase from RMB 27,744 million in Q2 2023[8] - Gross profit for Q2 2024 was RMB 17,135 million, with a gross margin of 55.3%, compared to RMB 13,934 million and 50.2% in Q2 2023, marking a 23.0% increase[8] - Operating profit surged to RMB 3,906 million in Q2 2024, a 201.4% increase from RMB 1,296 million in Q2 2023, reflecting improved operational efficiency[8] - Net profit for Q2 2024 was RMB 3,980 million, up 168.7% from RMB 1,481 million in Q2 2023, indicating strong profitability growth[8] - Adjusted net profit for Q2 2024 was RMB 4,679 million, a 73.7% increase from RMB 2,694 million in Q2 2023, with an adjusted net profit margin of 15.1%[8] - Total revenue for the first half of 2024 was RMB 60,383 million, a 14.0% increase from RMB 52,961 million in the same period of 2023[9] - Adjusted EBITDA for the first half of 2024 reached RMB 12,323 million, reflecting a 95.2% increase from RMB 6,312 million in the first half of 2023[9] User Engagement - Average daily active users (DAUs) increased to 395.3 million, up 5.1% year-on-year[16] - Average monthly active users (MAUs) reached 691.8 million, reflecting a year-on-year growth of 2.7%[16] - The company reported a significant increase in user engagement, with a year-over-year growth of 25% in active users[89] Market Performance - Domestic revenue accounted for RMB 29,896 million in Q2 2024, while overseas revenue was RMB 1,079 million, indicating a strong domestic market performance[11] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[8] - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by the end of 2025[91] E-commerce Growth - E-commerce GMV for the first half of 2024 was RMB 593.3 billion, compared to RMB 490.2 billion in the same period last year, marking a significant increase[13] - E-commerce GMV in Q2 2024 reached RMB 305.3 billion, representing a 15% year-on-year growth, with monthly active buyers increasing by 14.1% to 131 million[19] - The company’s short video e-commerce GMV in Q2 2024 grew nearly 70% year-on-year, enhancing the synergy between short videos and live streaming[20] Revenue Streams - Online marketing service revenue grew by 22.1% year-on-year to RMB 17.5 billion in Q2 2024[17] - The gross profit margin improved to over 55% in Q2 2024, with adjusted net profit reaching RMB 4.7 billion[15] - Live streaming revenue in Q2 2024 decreased by 6.7% to RMB 9.3 billion, with a focus on refining operational models and enhancing the live streaming ecosystem[21] Operational Efficiency - The company reported a significant increase in operating profit margin, with domestic operating profit margin at 48.3% in Q2 2024 compared to 11.6% overall[11] - Sales and marketing expenses rose by 16.3% from RMB 8,636 million in Q2 2023 to RMB 10,040 million in Q2 2024, representing 32.4% of total revenue[32] - R&D expenses decreased by 11.1% from RMB 3,155 million in Q2 2023 to RMB 2,805 million in Q2 2024[32] Financial Position - As of June 30, 2024, the company's cash and cash equivalents amounted to RMB 11.4 billion, up from RMB 11.0 billion on March 31, 2024[55] - The total available funds as of June 30, 2024, were RMB 77.7 billion, an increase from RMB 63.7 billion on March 31, 2024[55] - The company reported a net financial income of RMB 66 million in Q2 2024, down from RMB 158 million in the same period of 2023[36] Corporate Governance - The company has complied with all applicable corporate governance code provisions during the reporting period, except for the separation of roles between the Chairman and CEO[96] - The company aims to enhance its corporate governance practices to align with legal and professional standards[96] - The corporate governance committee has confirmed that the company has taken sufficient measures to manage potential conflicts of interest with different voting rights beneficiaries[110] Stock Options and Employee Incentives - The company has implemented an employee stock ownership plan to attract and retain talent, with a maximum issuance of 711,946,697 shares[169] - As of June 30, 2024, there are 43,049,250 unexercised stock options with a weighted average exercise price of HKD 16.27[171] - The company continues to focus on retaining and incentivizing key participants through its stock option plans[77] Future Outlook - The company has set a performance guidance of 20% revenue growth for the next quarter[89] - Future guidance indicates an expected revenue growth of 20% for the next six months, projecting total revenue of RMB 1.8 billion[200] - The management emphasized a commitment to improving ROI, aiming for a return of 15% on new investments[200]

Investment Rating - The report assigns a "Buy" rating for the company Kuaishou (1024 HK) with a target price of HKD 54.00, indicating a potential upside of 21.6% from the current price of HKD 44.40 [1][18]. Core Insights - Kuaishou's Q2 2024 profits exceeded expectations, with total revenue reaching RMB 31 billion, a year-on-year increase of 12%, slightly above market expectations due to a smaller-than-expected decline in live streaming revenue [2]. - The gross margin improved to 55.3%, up 5.1 percentage points year-on-year, driven by better cost control and an increase in advertising and e-commerce revenue [2]. - The adjusted net profit for Q2 was RMB 4.7 billion, representing a year-on-year increase of 74%, outperforming both the report's and market's expectations [2]. Financial Overview - Revenue projections for the upcoming years are as follows: RMB 126.97 billion in 2024, RMB 140.03 billion in 2025, and RMB 151.8 billion in 2026, with respective growth rates of 11.9%, 10.3%, and 8.4% [3][19]. - The adjusted net profit is expected to reach RMB 18.01 billion in 2024, RMB 22.03 billion in 2025, and RMB 26.42 billion in 2026, with significant growth rates of 77.2%, 23.3%, and 21.1% respectively [3][19]. - The report anticipates a compound annual growth rate (CAGR) of 21% for profits from 2024 to 2026, indicating a favorable long-term outlook [2]. Business Segment Performance - E-commerce GMV (Gross Merchandise Volume) grew by 15% year-on-year, although this was below the expected 19%, primarily due to the impact of top streamers' inactivity and competition [2]. - Online marketing revenue increased by 22%, driven by accelerated growth in external advertising revenue, benefiting from increased spending on paid short dramas and local businesses [2]. - Live streaming revenue saw a slight decline of 7% year-on-year, which was better than expected due to improved operational efficiency [2]. Valuation - The report has adjusted the target price to HKD 54, based on a 10x P/E ratio for 2025, reflecting a slight decrease from the previous target of HKD 55 [2]. - The current price corresponds to an 8.1x P/E ratio for 2025, indicating that the stock is undervalued relative to its growth potential [2].

Investment Rating - The report maintains a "Buy" rating for Kuaishou Technology (1024.HK) with a target price of 60.3 HKD, indicating an expected return exceeding 15% over the next 6-12 months [3][25]. Core Insights - Kuaishou's Q2 2024 results exceeded market expectations, with total revenue reaching 31 billion RMB, a year-on-year increase of 11.6%, and adjusted net profit of 4.68 billion RMB, surpassing the consensus estimate [2][10]. - The company's gross margin improved to 55.3%, up 5.2 percentage points year-on-year, reflecting effective cost control and operational efficiency [11][20]. - Daily Active Users (DAU) and Monthly Active Users (MAU) showed growth, with DAU at 395 million, a 5.1% increase year-on-year, and MAU at 692 million, a 2.7% increase [14][15]. Financial Performance - Total revenue for Q2 2024 was 310 billion RMB, with online marketing revenue at 175 billion RMB (up 22.1%), live streaming revenue at 93 billion RMB (down 6.7%), and other services (mainly e-commerce) revenue at 42 billion RMB (up 21.3%) [2][10]. - The adjusted net profit for Q2 2024 was 46.8 billion RMB, a 74% increase from 26.9 billion RMB in Q2 2023 [11][20]. - The company’s domestic operating profit reached 45 billion RMB, a 48% year-on-year increase, while overseas losses narrowed to 2.8 billion RMB [13][20]. Platform Ecosystem - Kuaishou's DAU growth was driven by a focus on high-quality growth strategies, with average daily usage time per DAU reaching 122 minutes, a 4.1% increase year-on-year [14][15]. - The platform has introduced innovative content, such as the first AIGC original fantasy micro-drama, which garnered over 50 million views within two weeks [14][15]. Commercialization - Online marketing revenue grew significantly, driven by external marketing services, which saw a substantial increase, particularly in media and local life sectors [16][20]. - E-commerce GMV reached 305.3 billion RMB, a 15% year-on-year increase, although it fell short of market expectations [17][20]. - Live streaming revenue declined, but new growth points were identified through the "Live+" model, enhancing user engagement and content quality [19][20]. Valuation and Forecast - The adjusted net profit forecasts for 2024-2026 have been raised to 172.8 billion RMB, 236.1 billion RMB, and 302.3 billion RMB, respectively [20][21]. - The report assigns valuation multiples of 0.6x PS for live streaming and online marketing, and 0.12x PSG for e-commerce, reflecting the competitive landscape and macroeconomic conditions [20][21].

Investment Rating - The report maintains a "Buy" rating for Kuaishou-W (1024.HK) [1] Core Insights - The company's revenue for Q2 2024 reached RMB 30.975 billion, representing a year-on-year increase of 11.6% and a quarter-on-quarter increase of 5.3% [5] - The adjusted net profit for Q2 2024 was RMB 4.679 billion, exceeding market expectations, with an adjusted net profit margin improving to 15.1% [3][5] - The company continues to leverage AI to enhance its core business operations, with significant improvements in profitability and user engagement metrics [6][7] Summary by Sections User Growth and Engagement - Kuaishou's platform user metrics show robust growth, with Monthly Active Users (MAU) reaching 692 million and Daily Active Users (DAU) at 395 million, maintaining high user engagement with an average daily usage time of 122 minutes [2][3] Financial Performance - The gross profit margin for Q2 2024 was 55.3%, an increase of 5.1 percentage points year-on-year [3] - The sales expense ratio was 32.4%, up 1.3 percentage points year-on-year, while the R&D expense ratio decreased to 9.1% [3] - The company achieved a significant year-on-year increase in online marketing service revenue, which grew by 22.1% to RMB 17.5 billion [4] Business Segments - Live streaming revenue for Q2 2024 was RMB 9.3 billion, a year-on-year decrease of 6.7% but an increase of 8.5% quarter-on-quarter [4] - Other business revenues increased by 21.3% to RMB 4.2 billion, with e-commerce GMV growing by 15% to RMB 305.3 billion [4][5] AI Integration - Kuaishou has developed an advanced AI matrix, including large language models and visual generation models, which are integrated into various business scenarios to enhance content creation and user interaction [6][7] Profitability Forecast - The report projects revenues for FY2024-2026 to be RMB 127.8 billion, RMB 142.5 billion, and RMB 157.4 billion respectively, with adjusted net profits of RMB 18.3 billion, RMB 23.3 billion, and RMB 27.8 billion [7][9]

Investment Rating - The report maintains a "Buy" rating for Kuaishou-W (01024.HK) [3] Core Views - Kuaishou's revenue for Q2 2024 reached 31 billion CNY, representing a year-over-year growth of 11.6%. The revenue breakdown includes advertising at 17.5 billion CNY, live streaming at 9.3 billion CNY, and e-commerce at 4.2 billion CNY, with respective year-over-year changes of +22.1%, -6.7%, and +21.3% [1] - The company is experiencing strong growth in its e-commerce segment, with a GMV of 305.3 billion CNY in Q2, up 15% year-over-year. The average monthly buyers reached 131 million, reflecting a 14.1% increase [1] - Kuaishou's advertising revenue grew by 22% year-over-year, accounting for 56.5% of total revenue, driven by the upgrade of marketing products and strong performance in various sectors [1][2] Financial Performance - Kuaishou's Q2 gross margin was 55.3%, an increase of 5.1 percentage points year-over-year. The adjusted net profit for Q2 was 4.7 billion CNY, with an adjusted net profit margin of 15.1%, up 5.4 percentage points year-over-year [1] - The report forecasts revenues of 126.5 billion CNY, 135.5 billion CNY, and 144.4 billion CNY for 2024, 2025, and 2026, respectively, with growth rates of 12%, 7%, and 7% [2][6] - Adjusted net profits are expected to be 17.4 billion CNY, 23.3 billion CNY, and 28.9 billion CNY for the same years, with growth rates of 69%, 34%, and 24% [2][6] E-commerce and Advertising Growth - The e-commerce segment is diversifying with high growth in shelf and search formats, with shelf e-commerce accounting for over 25% of total GMV in Q2. The number of active merchants and buyers has significantly increased during promotional periods [1] - Kuaishou is focusing on enhancing its smart marketing solutions, with 40% of total marketing consumption coming from merchants using comprehensive promotion products [1][2] AI Integration - Kuaishou is integrating AI into its business, with nearly 20,000 merchants utilizing its AI solutions in H1 2024. The daily consumption of AIGC marketing materials reached 20 million CNY in Q2 [2]

[Table_StockNameRptType] 快手-W（1024.HK） 公司研究/公司点评 快手 24Q2 点评：收入符合预期，利润显著超预期 | --- | --- | |--------------------------------|-------------| | [Table_Rank] | | | 报告日期： | | | [Table_BaseData] 收盘价（HKD） | 40 | | 近 12 个月最高/最低（ | 69.60/38.40 | | 总股本（百万股） | 4353 | | 流通股本（百万股） | 3600 | | 流通股比例（%） | 82.7 | | 总市值（亿元） | 1594 | | 流通市值（亿元） | 1318 | | [Table_Chart] | | 20% 快手-W 恒生指数 0% -20% -40% 主要观点： ⚫ 事件 [Table_Summary] 公司发布 24Q2 财报，24Q2 快手实现营收 309.75 亿元（YoY +11.6%），好于彭博预期的 303.68 亿元（YoY +9.5%）；24Q2 公司经调 整归母净利润达 46.79 亿元 ...

证券研究报告 | 2024年08月22日 证券分析师：张伦可 证券分析师：陈淑媛 0755-81982651 021-60375431 zhanglunke@guosen.com.cnchenshuyuan@guosen.com.cn S0980521120004 S0980524030003 合理估值 70.00 - 93.00 港元 收盘价 44.40 港元 总市值/流通市值 193277/159838 百万港元 52 周最高价/最低价 69.60/38.40 港元 近 3 个月日均成交额 1237.35 百万港元 | --- | --- | |----------|----------------| | 基础数据 | | | 投资评级 | 优于大市(维持) | | 市场走势 | | | --- | --- | --- | --- | --- | --- | |-----------------------|---------|-------------|-------------|-------------|-------------| | 盈利预测和财务指标 | 2023 | 2024E | 2025 ...

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% compared to the benchmark index [5][11]. Core Insights - The company's revenue and profit are steadily increasing, with a historical high in profit margins. In H1 2024, the company achieved a revenue of 603.83 billion, a year-on-year growth of 14.0%, and a gross margin of 55.1%, up 6.7 percentage points from the same period last year. The adjusted net profit was 90.67 billion, with a net margin of 15.0%, an increase of 9.8 percentage points year-on-year [2]. - Active user numbers are growing steadily, with the AI matrix enabling multiple business enhancements. In Q2 2024, the Daily Active Users (DAU) and Monthly Active Users (MAU) reached 395 million and 692 million, respectively, representing a year-on-year growth of 5.1% and 2.7%. The average daily usage time per DAU was 122 minutes, with total user usage time increasing by 9.5% year-on-year [3]. - Advertising revenue growth is in line with expectations, while e-commerce GMV has slowed down. In Q2 2024, online marketing revenue was 175 billion, a year-on-year increase of 22.1%. The e-commerce GMV for H1 2024 was 593.3 billion, up 21% year-on-year, with Q2 GMV reaching 305.3 billion, a 15% increase [4]. Summary by Sections Financial Performance - In H1 2024, the company reported a revenue of 603.83 billion, with a gross margin of 55.1% and an adjusted net profit of 90.67 billion, reflecting a net margin of 15.0% [2][5]. - The projected adjusted net profits for 2024-2026 are 176.49 billion, 224.52 billion, and 275.48 billion, respectively [5][9]. User Engagement - The DAU and MAU figures for Q2 2024 were 395 million and 692 million, with daily usage time averaging 122 minutes [3]. - The penetration rate of search users has improved, with nearly 500 million monthly active users utilizing the search function in Q2 2024 [3]. Business Segments - The online marketing business saw a revenue of 175 billion in Q2 2024, while the e-commerce GMV for H1 2024 was 593.3 billion [4]. - The live streaming revenue in Q2 2024 was 93 billion, showing a decline of 6.7% year-on-year, despite a 60% increase in the number of signed contract hosts [4].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 55, representing a potential upside of 37.5% from the last closing price of HKD 40 [1]. Core Insights - The company's Q2 2024 performance exceeded market expectations, with revenue reaching RMB 30.9 billion (QoQ +5.3%, YoY +11.6%) and adjusted net profit at RMB 4.68 billion (QoQ +6.6%, YoY +73.7%), marking a historical high [1]. - The growth in online marketing revenue was significant, amounting to RMB 17.5 billion (QoQ +5.2%, YoY +22.1%), driven by improvements in advertising strategies and algorithms [1]. - E-commerce GMV for Q2 2024 was RMB 305.3 billion (QoQ +6.0%, YoY +15.0%), with a notable increase in the share of general merchandise GMV [1]. Financial Performance - The gross profit for Q2 2024 was RMB 17.1 billion, with a gross margin of 55.3%, up 5.1% year-on-year [1]. - The adjusted net profit margin reached 15.1%, indicating strong profitability despite challenges in e-commerce growth [1]. - The company reported a significant reduction in overseas losses, with overseas revenue of RMB 1.1 billion (QoQ +11.0%, YoY +141.4%) [1]. User Metrics - Daily active users (DAU) for Q2 2024 were 395 million (QoQ +0.4%, YoY +5.1%), while monthly active users (MAU) were 692 million (QoQ -0.8%, YoY +2.7%) [1]. - The average daily usage time per user was 122 minutes, reflecting a year-on-year increase of 4.3% [1]. Market Position - The company is positioned in the TMT (Technology, Media, and Telecommunications) sector, with a current market capitalization of HKD 174.1 billion [1]. - Major shareholders include Tencent, holding 15.7% of the company [1].