KUAISHOU(HK:01024)2024-11-22 00:19Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 54.00, indicating a potential upside of 16.4% from the current price of HKD 46.40 [4][24]. Core Insights - The company's Q3 2024 performance met expectations, with total revenue of RMB 31.1 billion, a year-on-year increase of 11%. Adjusted net profit reached RMB 3.9 billion, reflecting a 24% increase year-on-year, corresponding to an adjusted net profit margin of 12.7% [1][20]. - The company is expected to maintain a revenue growth of 10% year-on-year in Q4 2024, with e-commerce GMV projected to grow by 14% year-on-year, despite ongoing industry competition [2][22]. - The valuation remains attractive, with a projected compound annual growth rate (CAGR) of 22% for profits from 2024 to 2026, and the current price corresponds to a 2025 price-to-earnings ratio of 8.7 times [3][22]. Financial Overview - For the fiscal year ending December 31, 2024, the company is projected to generate revenue of RMB 127.2 billion, with a year-on-year growth rate of 12.1%. The net profit is expected to reach RMB 17.8 billion, with an earnings per share (EPS) of RMB 4.04 [7][22]. - The company’s gross profit margin is expected to improve, with a projected gross margin of 54% in Q4 2024, supported by cost control measures and revenue structure optimization [20][22]. - The company’s market capitalization is approximately HKD 165.55 billion, with a 52-week high of HKD 62.20 and a low of HKD 38.15 [6][22].