KUAISHOU(01024) Orient Securities·2025-04-07 03:08Investment Rating - The report maintains a "Buy" rating for the company [2][18]. Core Views - The company's performance in Q4 2024 met expectations, with significant long-term growth potential driven by its AI capabilities [1][5]. - Daily Active Users (DAU) remained above 400 million, with a year-over-year increase of 4.8%, while Monthly Active Users (MAU) grew by 5.0% to 736 million [5]. - Advertising revenue in Q4 2024 increased by 13.3% year-over-year to 20.6 billion CNY, slightly below market expectations [5]. - E-commerce Gross Merchandise Volume (GMV) rose by 14.4% year-over-year to 462.1 billion CNY, with a notable increase in active buyers [5]. - Live streaming revenue decreased by 2.0% year-over-year to 9.8 billion CNY, but the decline was less than expected due to improved content quality [5]. - The adjusted net profit for Q4 2024 reached 4.7 billion CNY, aligning with expectations, and the company anticipates a full-year adjusted net profit of 19.4 billion CNY for 2025 [5][7]. Summary by Sections User Engagement - DAU maintained over 400 million, with MAU reaching 736 million, indicating strong user retention and engagement [5]. - Average daily usage time per user increased by 0.9% year-over-year to 125.6 minutes [5]. Advertising Performance - Q4 2024 advertising revenue was 20.6 billion CNY, accounting for 58.3% of total revenue, with external circulation growth in the high teens [5]. - The company expects a slowdown in advertising revenue growth in Q1 2025, projecting a year-over-year increase of 7.0% [5]. E-commerce Growth - E-commerce GMV reached 462.1 billion CNY, with a 14.4% year-over-year increase, and the number of active buyers grew by 10% [5]. - The proportion of general merchandise in e-commerce reached 30%, indicating a shift towards diversified product offerings [5]. Live Streaming Insights - Live streaming revenue saw a smaller decline than anticipated, with a year-over-year decrease of 2.0% to 9.8 billion CNY [5]. - The number of signed-up agencies and hosts increased significantly, suggesting a strengthening of the live streaming ecosystem [5]. Financial Performance - The adjusted net profit for Q4 2024 was 4.7 billion CNY, with a full-year projection of 19.4 billion CNY for 2025 [5][7]. - The company’s gross margin improved to 54.0%, reflecting operational efficiency [5]. Future Outlook - The report highlights the potential of the company's AI tool, KuaLing, which is expected to enhance advertising and e-commerce capabilities [6][8]. - Long-term revenue projections for KuaLing suggest a market potential of 20-25 billion USD, with significant contributions from both B2B and C2C segments [6][9].