Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a significant profit exceeding expectations for Q1 2024, leading to an upward revision of full-year profit forecasts [3][4] - Q1 2024 revenue reached 294.08 billion RMB, a year-over-year increase of 16.6%, surpassing Bloomberg's expectation of 290.44 billion RMB [3] - Adjusted net profit for Q1 2024 was 43.88 billion RMB, significantly higher than the expected 31.98 billion RMB [3] - Domestic revenue was 284.17 billion RMB (YoY +14.2%), while international revenue surged to 9.91 billion RMB (YoY +193.2%) [3] - The company is focusing on enhancing user engagement through rich content supply and algorithm optimization, resulting in a steady increase in daily active users (DAU) and monthly active users (MAU) [3][4] Summary by Sections Financial Performance - Q1 2024 total revenue was 294.08 billion RMB, with a YoY growth of 16.6% [3] - Adjusted net profit reached 43.88 billion RMB, exceeding expectations [3] - The company expects total revenue for 2024-2026 to be 1275.8 billion RMB, 1455.7 billion RMB, and 1640.5 billion RMB respectively [4] User Engagement - DAU reached 394 million (YoY +5.2%) and MAU reached 697 million (YoY +6.6%) [3] - Daily average usage time per user was 129.5 minutes [3] - The company has enhanced its search capabilities using large language models, resulting in a 15% increase in search users [3] Online Marketing Services - Online marketing service revenue for Q1 2024 was 166.50 billion RMB, a YoY increase of 27.4% [3] - The company is leveraging AI to provide intelligent marketing solutions, with significant growth in automated advertising solutions [3][4] E-commerce and Other Services - Other services revenue reached 41.83 billion RMB, with e-commerce GMV growing by 28.2% to 2881 billion RMB [3] - Monthly active buyers reached 126 million, a YoY increase of 22.4% [3] International Business - International revenue for Q1 2024 was 9.91 billion RMB, with a YoY increase of 193.2% [4] - The company is focusing on localizing its overseas strategy, leading to a reduction in operating losses [4] Stock Buyback - The company plans to repurchase up to 16 billion HKD of shares over the next three years, reflecting management's confidence in the company's value [4]

Investment Rating - The report maintains a "Buy" rating for Kuaishou Technology with a target price of HK$72.00, representing a potential upside of 27% from the current price of HK$56.90 [1][3][11]. Core Insights - Kuaishou's revenue for Q1 2024 grew by 17% year-on-year to RMB 29.4 billion, aligning with expectations, while adjusted net profit margin exceeded forecasts at 14.9% [3][4]. - The e-commerce and advertising segments are expected to drive a significant increase in adjusted net profit, projected to grow by 85% year-on-year in 2024 [3][4]. - The company announced a share buyback plan of HK$16 billion over the next three years, aiming to repurchase approximately 2% of its shares annually [3]. Financial Summary - Revenue projections for 2024 are set at RMB 126.9 billion, reflecting a 12% year-on-year increase, with e-commerce GMV expected to grow by 24% [4][10]. - Adjusted net profit for 2024 is revised upwards to RMB 19.05 billion, corresponding to a net profit margin of 15.0%, up from 9.1% in 2023 [4][10]. - The report forecasts EPS of RMB 4.35 for 2024, increasing to RMB 5.54 in 2025 and RMB 7.22 in 2026, with corresponding P/E ratios of 11.7x for 2024 and 9.2x for 2025 [1][5][10]. Market Position and Growth Drivers - Kuaishou's e-commerce GMV reached RMB 288 billion in Q1 2024, driven by an increase in monthly active users and a 70% rise in active merchants [3][4]. - The company is enhancing its multi-scenario shopping experience, with shelf e-commerce GMV growing over 50%, now accounting for 25% of total GMV [3][4]. - Advertising revenue is projected to grow by 21% in 2024, supported by strong internal advertising growth and a recovery in external advertising [4][10].

更多资料加入知识星球：水木调研纪要 关注公众号：水木纪要 28 May 2024 | 8:53PM HKT 更多一手调研纪要和研报数据加V：shuinu9870 2131d4eaf4cb4d50b1d51c8af07b64b4 Kuaishou Technology (1024.HK): NDR highlights: Early 6.18 sales trend on track, ads+eCom to grow 20%+ yoy; Buy (on CL) We hosted Kuaishou Head of IR for post-result investor meeting. Key highlights: 更多一手调研纪要和研报数据加V：shuinu9870 1) Advertising: Adtech upgrade. Daily incremental ad revenue of Rmb10mn revenue (Rmb3bn if annualized) from Gen-AI empowered ad solutions; longer-term Kuaishou to use AI en ...

Investment Rating - The investment rating for the company is "Buy" with a target price of 68 HKD, maintaining the rating [7]. Core Insights - The company's Q1 2024 performance exceeded expectations, with a revenue of 29.41 billion HKD, representing a year-on-year growth of 16.6%. The adjusted net profit was approximately 4.39 billion HKD, significantly surpassing Bloomberg consensus estimates, indicating a trend towards profit release [1]. - The company has shown strong growth in its core business, with a notable improvement in cost efficiency, leading to a significant reduction in sales expense ratio by 2.7 percentage points to 31.9% [1]. - User engagement metrics are positive, with daily active users (DAU) reaching 390 million, a year-on-year increase of 5.2%, and average daily usage time per user at 129.5 minutes, up 2.1% year-on-year [2]. Revenue Breakdown - Online marketing revenue for Q1 2024 was 16.65 billion HKD, reflecting a year-on-year increase of 27.4%, driven by strong growth in both internal and external advertising [3]. - Other service revenues, including e-commerce, grew by 47.6% to 4.18 billion HKD, with e-commerce GMV reaching 288.07 billion HKD, a 28.2% increase year-on-year [4]. - Live streaming revenue was 8.58 billion HKD, showing a decline of 8% year-on-year, but the number of signed agencies and streamers increased by 50% [5]. International Business - The company's overseas business generated revenue of 0.991 billion HKD, marking a year-on-year growth of 193.2%, with a significant increase in marketing revenue [6].

Investment Rating - The report maintains a "Buy" rating for Kuaishou, with a target price of 80 HKD, corresponding to a 15x P/E for 2025 estimates [2][7]. Core Insights - Kuaishou's revenue for Q1 2024 reached 29.4 billion CNY, representing a year-over-year growth of 17%. The breakdown includes advertising revenue of 16.7 billion CNY (up 27%), live streaming revenue of 8.6 billion CNY (down 8%), and e-commerce revenue of 4.2 billion CNY (up 48%) [1][2]. - The company's Q1 gross margin improved to 54.8%, an increase of 8.4 percentage points year-over-year. Adjusted net profit for Q1 was 4.39 billion CNY, with an adjusted net profit margin of 14.9%, up 14.7 percentage points year-over-year, exceeding market expectations [1][2]. - Daily active users (DAU) and monthly active users (MAU) for Q1 were 394 million and 697 million, respectively, showing year-over-year growth of 5.2% and 6.6% [1]. Revenue Breakdown E-commerce - Q1 e-commerce GMV reached 288.1 billion CNY, a year-over-year increase of 28%. The average monthly number of buyers was 126 million, up 22.4% year-over-year. The number of active merchants increased by over 70% year-over-year [1][2]. - The share of general merchandise in total GMV was 25% in Q1, with a 98% year-over-year increase in order volume during the New Year Festival [1]. Advertising - Q1 advertising revenue grew by 27% year-over-year, accounting for 56.6% of total revenue. The number of active marketing clients increased by 90% year-over-year [1][2]. - The average advertising revenue per DAU rose by 21% to 42.3 CNY [1]. Live Streaming - Live streaming revenue faced a decline due to ongoing content ecosystem governance, with expectations for continued pressure on growth in the short term [2]. AI and Innovation - Kuaishou is leveraging AI to enhance its business, with significant improvements in smart marketing solutions and user engagement through AI-driven interactions [2]. Financial Projections - Revenue projections for Kuaishou are estimated at 125.8 billion CNY for 2024, 141.7 billion CNY for 2025, and 155.7 billion CNY for 2026, with year-over-year growth rates of 11%, 13%, and 10%, respectively [2][5][6]. - Adjusted net profit is projected to reach 17 billion CNY in 2024, 21.8 billion CNY in 2025, and 28.3 billion CNY in 2026, with growth rates of 65%, 29%, and 30% [2][5][6].

Investment Rating - The investment rating for the company is "Buy" [5] Core Insights - The company's revenue for Q1 2024 reached 29.4 billion HKD, representing a year-on-year increase of 17%. The adjusted profit margin grew by 15 percentage points, with a gross margin of 54.8%, up 8.4 percentage points year-on-year. This improvement is attributed to optimized revenue sharing in live streaming and reduced bandwidth and server costs [1][7] - The company has announced a share buyback plan of 16 billion HKD over the next three years, which reflects confidence in its business outlook [2][12] - The adjusted net profit for Q1 2024 was 4.39 billion HKD, with an adjusted profit margin of 14.9%, marking a 15% increase year-on-year and a 2% increase quarter-on-quarter [1][7] Revenue and Profitability - The company's total revenue is projected to grow from 113.47 billion HKD in 2023 to 162.79 billion HKD by 2027, with a compound annual growth rate (CAGR) of approximately 5% [3][14] - Adjusted net profit is expected to rise from 10.27 billion HKD in 2023 to 30.99 billion HKD in 2027, indicating a significant recovery and growth trajectory [3][14] - The company’s EBIT margin is forecasted to improve from 2% in 2023 to 16.1% by 2026, reflecting enhanced operational efficiency [3][14] User Engagement and Traffic - The total monthly active users (MAU) reached 702 million, with a year-on-year growth of 7%. Daily active users (DAU) stood at 391 million, up 4% year-on-year [9][10] - The average daily usage time per user was 129.5 minutes, which is a 2% increase compared to the previous year [9] Business Segments - E-commerce revenue for Q1 2024 was 4.2 billion HKD, showing a year-on-year increase of 48%. The gross merchandise volume (GMV) reached 288.1 billion HKD, up 28% year-on-year [10][11] - Advertising revenue increased by 27% year-on-year to 16.7 billion HKD, with significant growth in internal advertising consumption [11] - Live streaming revenue, however, saw a decline of 8% year-on-year, with expectations of a further decrease in the upcoming quarters due to base effect considerations [11]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 73.82 HKD per share, based on a PE valuation of 17x for the year 2024 [3][5][10]. Core Insights - User growth remains healthy with 1Q24 DAU increasing by 5.2% year-over-year to 394 million and MAU up by 6.6% to 697 million. Average daily usage time per user is 129.5 minutes, reflecting a 2.1% year-over-year increase [1]. - Advertising revenue in 1Q24 grew by 27.4% year-over-year to 16.7 billion CNY, with active marketing clients increasing by 90%. The internal advertising cycle continues to grow rapidly, benefiting from algorithm optimization [1]. - E-commerce GMV in 1Q24 rose by 28.2% year-over-year to 288.1 billion CNY, with monthly active paying users increasing by 22.4% to 126 million [1]. - Live streaming revenue decreased by 8% year-over-year to 8.6 billion CNY, aligning with expectations due to ecosystem governance [1]. - Adjusted net profit for 1Q24 reached 4.4 billion CNY, exceeding expectations, with a gross margin of 54.8% [1][2]. Summary by Sections User Metrics - 1Q24 DAU: 394 million (+5.2% YoY) - 1Q24 MAU: 697 million (+6.6% YoY) - Average daily usage time: 129.5 minutes (+2.1% YoY) [1]. Advertising Performance - 1Q24 advertising revenue: 16.7 billion CNY (+27.4% YoY) - Advertising as a percentage of total revenue: 56.6% - Active marketing clients: +90% YoY [1]. E-commerce Insights - 1Q24 GMV: 288.1 billion CNY (+28.2% YoY) - Monthly active paying users: 126 million (+22.4% YoY) - Monthly active merchants: +70% YoY [1]. Live Streaming - 1Q24 live streaming revenue: 8.6 billion CNY (-8% YoY) - Expected 2Q24 decline: 18% [1]. Financial Performance - Adjusted net profit for 1Q24: 4.4 billion CNY - Gross margin: 54.8% (+8.4 percentage points YoY) - Sales expenses: 9.4 billion CNY, with a sales expense ratio decrease of 2.7 percentage points YoY [1][2].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative price increase of over 20% against the market benchmark within the next six months [14]. Core Insights - The company reported a Q1 2024 revenue of 29.408 billion, a year-on-year increase of 16.6%, with domestic revenue at 28.417 billion (up 14.22%) and overseas revenue at 0.991 billion (up 193.20%). Adjusted net profit reached 4.388 billion, reflecting a significant year-on-year growth of 10,347.6% [2][3]. - A share repurchase plan was announced, allowing for the buyback of up to 16 billion HKD of Class B shares over the next 36 months, starting June 13, 2024, which indicates the company's confidence in its future development [2][5]. Financial Performance Summary - The gross margin for Q1 2024 was 54.82%, an increase of 8.37 percentage points year-on-year, attributed to changes in business structure and technological improvements. The proportion of high-margin business revenue has increased, with live streaming, other services, and online marketing services accounting for 29.16%, 14.22%, and 56.62% respectively [3]. - The company achieved online marketing revenue of 16.650 billion in Q1 2024, a year-on-year increase of 27.45%, leveraging AI and large language models for enhanced marketing solutions [4]. - The company has repurchased 61.7 million Class B shares worth 3.09 billion HKD as of May 22, 2024, further demonstrating its commitment to shareholder value [5]. Revenue and Profit Forecast - Revenue projections for 2024, 2025, and 2026 are estimated at 125.367 billion, 142.596 billion, and 163.246 billion respectively, with corresponding net profits of 12.770 billion, 18.820 billion, and 24.852 billion. The expected P/E ratios are 18.3X, 12.4X, and 9.4X [6][10].

Investment Rating - The report maintains a "Buy" rating for Kuaishou-W (01024.HK) [1][3] Core Views - Kuaishou's Q1 2024 financial performance is impressive, with total revenue reaching 29.4 billion RMB, a year-on-year increase of 16.6%, surpassing market expectations [1] - The company's net profit for Q1 2024 was 4.1 billion RMB, marking a significant turnaround from losses in the previous year, and adjusted net profit reached 4.4 billion RMB, exceeding market expectations [1] - The report highlights the strong growth in both advertising and e-commerce segments, indicating improved monetization efficiency [1] Financial Performance Summary - **Revenue Growth**: Kuaishou's Q1 total revenue was 29.4 billion RMB, up 16.6% year-on-year, exceeding the expected 29.04 billion RMB [1] - **User Metrics**: Daily Active Users (DAU) reached 394 million, a 5.2% increase year-on-year, while Monthly Active Users (MAU) reached 697 million, up 6.6% year-on-year [1] - **Profitability**: Gross margin improved to 54.8%, significantly higher than the expected 52.7% and up from 46.4% in the same period last year [1] - **Advertising Revenue**: Q1 advertising revenue was 16.7 billion RMB, a 27.4% increase year-on-year, driven by both internal and external advertising demand [1] - **E-commerce Performance**: Other services revenue, including e-commerce, reached 4.2 billion RMB, a 48% increase year-on-year, with e-commerce GMV growing by 28.2% [1] - **Live Streaming Revenue**: Live streaming revenue was 8.58 billion RMB, down 8% year-on-year, aligning with the company's strategic adjustments [1] Future Outlook - The report projects continued improvement in profitability and shareholder returns, with a target market capitalization of 308.8 billion HKD for 2024, corresponding to a target price of 71.15 HKD per share [1][3] - Revenue forecasts for 2024-2026 have been slightly adjusted upwards, with expected revenues of 129.3 billion RMB, 145.3 billion RMB, and 158.8 billion RMB respectively [1][11]

Investment Rating - The report maintains a "Buy" rating for Kuaishou-W (01024 HK) [1] Core Views - Kuaishou's Q1 2024 performance exceeded expectations with revenue of 29 408 billion yuan up 16 6% YoY beating Bloomberg consensus estimates [2] - Adjusted net profit reached 4 39 billion yuan surpassing the consensus estimate of 3 2 billion yuan [2] - The company announced a new share repurchase plan effective from June 13 2024 aiming to repurchase up to 16 billion HKD worth of Class B ordinary shares over the next three years [2] Financial Performance - Q1 2024 revenue grew 16 6% YoY to 29 408 billion yuan with gross margin at 55% higher than the consensus estimate of 52% [2] - Adjusted net profit increased slightly QoQ to 4 388 billion yuan in Q1 2024 despite it being a traditionally low season [3] - Cost optimization efforts led to a 4 percentage point YoY decrease in host sharing costs and related taxes as a percentage of revenue and a 2 percentage point YoY decrease in bandwidth and server hosting costs as a percentage of revenue [3] - Sales expense ratio R&D expense ratio and administrative expense ratio decreased by 2 68 1 91 and 2 07 percentage points YoY respectively [3] User Growth and Engagement - DAU reached 394 million in Q1 2024 up 5 2% YoY while MAU reached 697 million up 6 6% YoY [3] - DAU MAU ratio increased to 56 5% indicating strong user stickiness [3] - Average daily time spent per DAU increased by 2% YoY to 129 5 minutes [3] - Monthly active users using Kuaishou search grew over 15% YoY with peak daily search queries nearing 800 million [3] E-commerce and Monetization - Live streaming revenue decreased 8% YoY to 8 6 billion yuan in Q1 2024 with a projected 14% YoY decline in Q2 2024 [3] - Online marketing services revenue grew 27% YoY to 16 7 billion yuan driven by internal loop revenue growth and external loop advertising in sectors like media gaming and education [3] - Other revenue including e-commerce grew 48% YoY to 4 2 billion yuan [3] - GMV for e-commerce increased 28 2% YoY to 288 1 billion yuan in Q1 2024 with monthly active buyers reaching 126 million up 22 4% YoY [3] - The general shelf field contributed approximately 25% of total GMV with daily active sellers and buyers growing over 50% and 60% YoY respectively [3] Financial Forecasts - Revenue is projected to grow from 113 525 billion yuan in 2023A to 158 203 billion yuan in 2026E with a CAGR of 11 49% to 11 62% [2] - Net profit attributable to shareholders is expected to increase from 6 396 billion yuan in 2023A to 28 614 billion yuan in 2026E [2] - Non-GAAP net profit is forecasted to rise from 10 271 billion yuan in 2023A to 31 612 billion yuan in 2026E [2] - EPS is projected to grow from 1 47 yuan in 2023A to 6 59 yuan in 2026E [2] - The 2024-2026 adjusted PE ratios are estimated at 13x 9x and 7x respectively [4] Valuation and Market Data - The stock's closing price was 56 65 HKD with a 52-week range of 38 40 to 72 50 HKD [5] - The P B ratio stands at 4 71x [5] - The market capitalization is 203 032 billion HKD [5] - The company's net asset per share is 12 04 yuan with a debt-to-asset ratio of 50 53% [6]