KUAISHOU(HK:01024) Orient Securities·2025-04-07 03:23Investment 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 tool, KuaLing [1][5]. - The report highlights a stable user base with daily active users (DAU) exceeding 400 million, and a year-on-year increase of 4.8% [5]. - Advertising revenue grew by 13.3% year-on-year, reaching 20.6 billion CNY, although slightly below market expectations [5]. - E-commerce gross merchandise volume (GMV) increased by 14.4% year-on-year to 462.1 billion CNY, with a notable rise in active buyers [5]. - Live streaming revenue showed a smaller decline than expected, down 2.0% year-on-year, indicating improved content quality and user engagement [5]. - The adjusted net profit for Q4 2024 was 4.7 billion CNY, aligning with expectations, and the company anticipates a net profit of 43 billion CNY in Q1 2025 [5][7]. Summary by Sections User Metrics - DAU remained above 400 million, with MAU increasing by 5.0% to 736 million [5]. - Average daily usage time per user rose by 0.9% to 125.6 minutes [5]. Advertising Performance - Q4 2024 advertising revenue reached 20.6 billion CNY, accounting for 58.3% of total revenue [5]. - The external circulation advertising segment grew significantly, with short dramas and other content types driving growth [5]. E-commerce Insights - E-commerce GMV for Q4 2024 was 462.1 billion CNY, with a 14.4% year-on-year increase [5]. - The number of active buyers rose by 10% year-on-year, reaching 143 million [5]. Live Streaming Developments - Live streaming revenue decreased by 2.0% year-on-year to 9.8 billion CNY, better than market expectations [5]. - The number of signed-up agencies and hosts increased significantly, indicating a healthier ecosystem [5]. Financial Performance - Adjusted net profit for Q4 2024 was 4.7 billion CNY, with a net profit margin of 13.3% [5][7]. - The company expects an adjusted net profit of 194 billion CNY for the full year of 2025 [7]. KuaLing AI Tool - KuaLing's commercial potential is viewed positively, with expectations for significant revenue growth in the medium to long term [6][8]. - The tool has already generated over 100 million CNY in revenue since its monetization began [6].