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]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 73.82 HKD per share, based on a 17x PE valuation for 2024 [7][14]. 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, a 2.1% increase year-over-year [1]. - Advertising revenue in 1Q24 grew by 27.4% year-over-year to 16.7 billion CNY, accounting for 56.6% of total revenue, with a significant increase in active marketing clients [1]. - E-commerce GMV increased by 28.2% year-over-year to 288.1 billion CNY, driven by a rich supply and the development of a broad shelf scenario [2]. - Live streaming revenue decreased by 8% year-over-year to 8.6 billion CNY, aligning with expectations due to ecosystem governance [2]. - Adjusted net profit for 1Q24 reached 4.4 billion CNY, exceeding expectations, with a gross margin of 54.8% [2]. User Growth and Engagement - 1Q24 saw a year-over-year increase in DAU of 5.2% to 394 million and MAU of 6.6% to 697 million. The average daily usage time per user was 129.5 minutes, reflecting a 2.1% increase year-over-year [1]. - The total user engagement time grew by 8.6% year-over-year, supported by improved channel structure and algorithm enhancements [1]. Advertising Performance - Advertising revenue in 1Q24 was 16.7 billion CNY, a 27.4% increase year-over-year, slightly exceeding Bloomberg consensus estimates [1]. - The number of active marketing clients increased by 90% year-over-year, with internal advertising growth outpacing e-commerce GMV growth [1]. E-commerce Development - E-commerce GMV rose by 28.2% year-over-year to 288.1 billion CNY, with other business revenue (primarily e-commerce commissions) increasing by 47.6% to 4.2 billion CNY [2]. - The number of monthly active paying users in e-commerce grew by 22.4% year-over-year to 126 million, with a penetration rate of 18.1% [2]. Live Streaming Revenue - Live streaming revenue in 1Q24 decreased by 8% year-over-year to 8.6 billion CNY, primarily due to governance measures within the live streaming ecosystem [2]. Profitability and Financial Performance - The adjusted net profit for 1Q24 was 4.4 billion CNY, with a gross margin of 54.8%, which is higher than the expected 52.6% [2]. - The report anticipates an adjusted net profit of 4.2 billion CNY for 2Q24, with significant improvements in cost management [2]. Share Buyback Plan - The company announced a share buyback plan of up to 16 billion HKD over the next three years, with 3.09 billion HKD already utilized to repurchase shares [3]. Financial Forecasts - The adjusted net profit forecasts for 2024-2026 are 17.17 billion CNY, 25.07 billion CNY, and 32.24 billion CNY respectively, reflecting an upward revision due to better-than-expected profit performance in 1Q24 [9].

Investment Rating - The report maintains a "Buy" rating for Kuaishou-W (1024.HK) [1] Core Views - Kuaishou demonstrates strong profitability improvement and continues to enhance shareholder returns, with a focus on user growth strategies and algorithm optimization [1][4] - The company has announced a stock repurchase plan, indicating optimism about future growth prospects and commitment to shareholder value [6] Summary by Sections Operational Performance - In Q1 2024, Kuaishou's platform user base showed steady growth, with MAU reaching 697 million and DAU at 394 million, maintaining high user engagement with an average daily usage time of 129.5 minutes [3][4] - Total user usage time in Q1 2024 increased by 8.6% year-on-year [3] Financial Performance - Kuaishou reported Q1 2024 revenue of 29.408 billion RMB, a year-on-year increase of 16.6% but a quarter-on-quarter decrease of 9.7% [4][6] - The gross margin improved to 54.8%, up 8.4 percentage points year-on-year [4] - Adjusted net profit reached 4.388 billion RMB, significantly better than market expectations, with an adjusted net profit margin of 15%, up 14.7 percentage points year-on-year [4][6] Business Segments - **Live Streaming**: Revenue from live streaming in Q1 2024 was 8.6 billion RMB, down 8% year-on-year and 14.7% quarter-on-quarter, as the company focuses on building a sustainable live streaming ecosystem [5] - **Online Marketing Services**: Revenue from online marketing services grew by 27.4% year-on-year to 16.7 billion RMB, with strong growth in both internal and external advertising [5] - **Other Businesses**: Other business revenue increased by 47.6% year-on-year to 4.2 billion RMB, with e-commerce GMV growing by 28.2% to 288.1 billion RMB [5] Profitability Forecast - The report projects Kuaishou's revenue for FY2024-2026 to be 128.2 billion, 146.0 billion, and 163.6 billion RMB respectively, with adjusted net profits of 19.2 billion, 27.6 billion, and 35.0 billion RMB [6][10] - The target price is set at 74 to 82 HKD, with a projected market value of 321.9 billion RMB for 2024 [6]

Financial Data and Key Metrics Changes - Total revenue for Q1 2024 grew by 16.6% year-over-year to RMB29.4 billion, with a gross margin close to 55% and an adjusted net profit of RMB4.4 billion, resulting in an adjusted net margin of 14.9% [8][34] - Online marketing services revenue increased by 27.4% year-over-year to RMB16.7 billion, accounting for 56.6% of total revenue [34][36] - E-commerce GMV grew by 28.8% year-over-year to RMB288.1 billion, with monthly active paying users increasing by 22.4% to 126 million [20][21] Business Line Data and Key Metrics Changes - Revenue from online marketing services rose significantly, driven by increased client spending and the adoption of smart marketing solutions [34][36] - Live streaming revenue decreased by 8% year-over-year to RMB8.6 billion, reflecting industry challenges [36] - E-commerce business saw a surge in both buyer conversion efficiency and the number of active merchants, with a 70% increase in daily active merchants year-over-year [21][23] Market Data and Key Metrics Changes - Average DAUs and MAUs on the Kuaishou app reached 394 million and 697 million, growing by 5.2% and 6.6% year-over-year, respectively [10] - Revenue from overseas business reached RMB191 million in Q1, up 193.2% year-over-year, with significant growth in key markets like Brazil [29][30] Company Strategy and Development Direction - The company is focused on enhancing user experience and monetization efficiency through AI technology and smart marketing solutions [9][31] - Kuaishou aims to integrate shelf-based and content-based e-commerce to drive sustainable growth in its e-commerce business [48] - The strategy includes optimizing the balance between traffic ecosystem and monetization to create a healthy environment for users and merchants [40] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's robust financial position and commitment to sustainable growth despite market challenges [33][34] - The focus will be on leveraging technology and innovation to unlock monetization potential and create long-term value for shareholders [40] Other Important Information - The company has launched a new buyback program of up to HKD16 billion over the next three years, reflecting confidence in its value and commitment to shareholder returns [63][66] - Significant advancements in AI and large language models were reported, with applications in various business scenarios enhancing user engagement and operational efficiency [68][72] Q&A Session Summary Question: Progress of e-commerce shopping mall business - The e-commerce business is experiencing rapid growth, with shelf-based e-commerce achieving over 50% year-over-year growth in Q1 2024 [42][43] Question: Driving forces for further revenue growth in online marketing services - Revenue growth will be driven by investments in ECPM and ad load, with a focus on enhancing sales funnel conversion paths for clients [49][50] Question: Strategy and tactics for local services in 2024 - The company aims to optimize local service offerings and enhance user experience, with significant growth in daily paying users of local services [55][58] Question: Considerations for the new buyback program - The new buyback program reflects the company's confidence in its value and is based on thorough analysis of cash flow and market expectations [63][66] Question: Latest progress on AI and large language models - The company has made significant advancements in AI, with applications in content understanding and customer service, enhancing operational efficiency [68][72]

Investment Rating - The report maintains a "Buy" rating for Kuaishou Technology with a target price adjusted to HKD 71, indicating a potential upside of 20% from the current price of HKD 59.15 [7][19]. Core Insights - Kuaishou's Q1 2024 revenue reached RMB 29.4 billion, a year-on-year increase of 16.6%, exceeding market expectations by 1.3%. The adjusted net profit was RMB 4.39 billion, surpassing market forecasts by 37% [6][7]. - The company announced a share buyback plan of up to HKD 16 billion over the next three years, representing about 6% of its current market capitalization, aimed at enhancing shareholder returns [6]. - The overall user engagement remains healthy, with Daily Active Users (DAU) at 394 million, up 5.2% year-on-year, and Monthly Active Users (MAU) reaching 697 million, a 6.6% increase [6]. Revenue and Profitability - The gross margin improved by 8.4 percentage points to 54.8%, primarily due to changes in revenue structure and reduced bandwidth costs [6]. - Advertising revenue for Q1 2024 was RMB 16.7 billion, reflecting a 27% year-on-year growth, driven by strong performance in e-commerce and external advertising [6]. - E-commerce revenue and other income reached RMB 4.2 billion, a significant 48% increase year-on-year, with Gross Merchandise Value (GMV) at RMB 288 billion, up 28% [6][8]. User Engagement and E-commerce Growth - Monthly average purchasing users increased by 22.4% to 126 million, and the number of active merchants grew by 70% year-on-year [6]. - Brand merchandise GMV in the short video segment grew over 110% year-on-year, while the general merchandise segment saw an increase of over 80% [6]. - The report anticipates a 25% year-on-year growth in e-commerce GMV for Q2 2024, supported by the ongoing enhancement of the e-commerce ecosystem [6]. Financial Forecasts - The report projects revenues of RMB 126.95 billion for FY24, with adjusted net profits expected to reach RMB 16.96 billion, reflecting a 65% increase from FY23 [8][12]. - The adjusted P/E ratios for FY24 and FY25 are forecasted at 17x and 14x, respectively, indicating a positive outlook on profitability [7][8].

Investment Rating - The report maintains a "Buy" rating for the company [1][4] Core Views - The company reported strong profit growth in Q1 2024, with revenue reaching 29.41 billion RMB, a year-on-year increase of 16.6%. The IFRS net profit was 4.12 billion RMB, a significant recovery from a net loss of 0.876 billion RMB in Q1 2023 [4][5] - The company continues to enhance operational efficiency, with an adjusted net profit of 4.39 billion RMB, reflecting a staggering year-on-year growth of 10,348% and an adjusted net profit margin of 14.9% [4][5] - User engagement remains robust, with monthly active users reaching 697 million and daily active users at 394 million, representing year-on-year growth of 6.6% and 5.2% respectively [4][5] - The advertising revenue for Q1 2024 was 16.65 billion RMB, up 27.4% year-on-year, driven by strong growth in short videos, gaming, and educational marketing [4][5] - E-commerce gross merchandise volume (GMV) grew by 28.2% year-on-year, reaching 288.1 billion RMB, with active buyers increasing by 22.4% to 126 million [4][5] Financial Summary - The company’s revenue for 2024 is projected to be 128.52 billion RMB, with a year-on-year growth rate of 13.27% [6] - The adjusted net profit for 2024 is estimated at 17.12 billion RMB, with a growth rate of 66.65% [6] - The company’s price-to-earnings (P/E) ratio is expected to decrease from 23.29 in 2023 to 13.85 in 2024, indicating improved valuation [6][5] - The gross profit margin for Q1 2024 reached 54.8%, an increase of 8.4 percentage points year-on-year, attributed to a higher proportion of high-margin advertising and e-commerce businesses [4][5]

Investment Rating - The investment rating for Kuaishou-W (1024.HK) is "Buy" and is maintained [5]. Core Views - Kuaishou reported a strong Q1 2024 performance with revenue of 29.41 billion CNY, a year-on-year increase of 16.6%, and a Non-GAAP net profit of 4.39 billion CNY, which is over 103 times higher than the previous year, marking a record high for a single quarter [2][6][7]. Revenue Summary - In Q1 2024, Kuaishou achieved online marketing service revenue of 16.65 billion CNY, up 27.4% year-on-year, accounting for 56.6% of total revenue. The number of advertisers increased by nearly 90% compared to the same period last year, driven by the application of smart marketing solutions [6][7]. - Live streaming revenue was 8.58 billion CNY, down 8.0% year-on-year, primarily due to the platform's ongoing efforts to enhance live streaming ecosystem governance [6][7]. - Other service revenue reached 4.18 billion CNY, a year-on-year increase of 47.6%, mainly attributed to the growth in e-commerce [6][7]. E-commerce Performance - Kuaishou's e-commerce GMV (Gross Merchandise Volume) grew by 28.2% year-on-year to 288.1 billion CNY in Q1 2024. The general merchandise GMV significantly outperformed the market, accounting for about 25% of total GMV, with daily active merchants and buyers increasing by over 50% and 60% year-on-year, respectively [6][7]. User Growth Metrics - Daily active users (DAUs) grew by 5.2% year-on-year to 394 million, while monthly active users (MAUs) increased by 6.6% to 697 million. Total user engagement time also rose by 8.6% year-on-year [6][7]. Profitability Insights - Kuaishou's Non-GAAP net profit for Q1 2024 was 4.39 billion CNY, reflecting a year-on-year increase of over 103 times. Domestic operating profit reached 3.99 billion CNY, up 314.4% year-on-year, driven by a 14.2% increase in domestic revenue [7]. - The gross profit was 16.12 billion CNY, a 37.6% year-on-year increase, with a gross margin of 54.8%, up 8.4 percentage points year-on-year [7]. Stock Buyback Plan - Kuaishou announced a new stock buyback plan, intending to repurchase shares worth up to 16 billion HKD over the next three years, with 3.09 billion HKD already repurchased [7]. Earnings Forecast - The company is expected to leverage AI technology to enhance efficiency across various business scenarios. Revenue forecasts for 2024 and 2025 are projected to reach 126.005 billion CNY and 142.011 billion CNY, respectively, with Non-GAAP net profits of 17.313 billion CNY and 24.302 billion CNY [7].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 87.50 per share, based on a valuation of 19x PE for the 2024 profit [4][30]. Core Insights - The company reported a revenue of RMB 29.4 billion for Q1 2024, exceeding consensus expectations by 1%. The net profit reached RMB 4.1 billion, a significant increase from a loss of RMB 880 million in the same period last year [2][12]. - Core commercial revenue, which includes advertising and e-commerce commissions, grew by 31% year-on-year in Q1 2024. Advertising revenue was RMB 16.65 billion, up 27% year-on-year, while e-commerce GMV increased by 28% year-on-year [2][12][13]. - The company announced a share buyback plan of up to HKD 16 billion over the next three years, indicating a commitment to shareholder returns [2][30]. Summary by Sections Financial Performance - Q1 2024 revenue reached RMB 29.4 billion, with a year-on-year growth of 17% and a quarter-on-quarter decline of 10%. The net profit was RMB 4.1 billion, compared to a loss of RMB 880 million in the same quarter last year [2][12]. - Non-GAAP net profit for Q1 2024 was RMB 4.39 billion, representing a year-on-year increase of 10,348% [2][12]. - The gross margin improved to 54.82%, up 8.4 percentage points year-on-year [22][30]. User Metrics - Daily Active Users (DAU) reached 394 million, a year-on-year increase of 5%, while Monthly Active Users (MAU) stood at 697 million, up 7% year-on-year [9][33]. - The average time spent per DAU was 130 minutes, reflecting a 2% year-on-year increase [9][33]. Revenue Breakdown - Advertising revenue accounted for RMB 16.65 billion, with a year-on-year growth of 27%. E-commerce commissions contributed significantly, with GMV growing by 28% year-on-year [2][12][28]. - Other revenue sources, including live streaming, saw a decline, with live streaming revenue at RMB 8.6 billion, down 8% year-on-year [2][12][13]. Future Projections - The company expects Q2 2024 total revenue to grow by 10% year-on-year, with advertising revenue projected to increase by 23% and e-commerce commissions by 25% [2][30]. - Revenue forecasts for 2024 and 2025 are set at RMB 1266 billion and RMB 1437 billion, respectively, with expected growth rates of 12% and 14% [2][30].

谢谢operator 大家好 欢迎参加快手科技2024年第一季度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孝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来境信息的义务。有关本会议的所有重要资料,包括前来境陈述,请以公司公开资料或今日早些时候在公司二二网站发布的截至2024年3月31日的2024年第一季度业绩公告为准。 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,仅供考虑作为补充,但不能替代根据国际会计准则编制的公司财务业绩指标。有关非国际会计准则财务指标的定义,及其与国际会计准则财务业绩的对照,以及相关风险因素提示,请参阅公司2024年第一季度业绩公告。 今天的电话会议中管理层将用中文作为主要沟通语言第一部分管理层发言环节第三方传译员将提供英文同声传译第二部分问答环节第三方传译员将提供英文交替传译翻译仅为提高会议效率若翻译与中文内容有所出入请以管理层的中文原始陈述为准最后除非您有说明所有在电话会议 ...