Shanghai Securities·2024-03-28 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [10][19]. Core Views - The company reported a revenue of 113.47 billion RMB for 2023, representing a year-over-year increase of 20.5%. The operating profit was 6.43 billion RMB, and the net profit was 6.40 billion RMB, with adjusted profit at 10.27 billion RMB [6][10]. - The company has entered a profitable phase, with significant growth in user engagement and revenue streams, particularly in e-commerce and advertising [7][8]. Summary by Sections Revenue and Profitability - The company achieved a revenue of 113.47 billion RMB in 2023, with a year-over-year growth of 20.5%. The operating profit was 6.43 billion RMB, marking a turnaround from a loss of 12.6 billion RMB in 2022 [6][8]. - The gross profit for 2023 was 57.39 billion RMB, up 36.2% from 42.13 billion RMB in 2022, resulting in a gross margin of 50.6%, an increase of 5.9 percentage points [8][10]. User Growth and Engagement - Monthly active users reached 700 million in Q4 2023, with daily active users averaging 382.5 million, reflecting a year-over-year increase of 4.5% [7]. - The average daily usage time per user was 124.5 minutes, indicating strong user engagement [7]. Revenue Breakdown - Online marketing services generated 60.30 billion RMB in revenue, a year-over-year increase of 22.97%. The number of active marketing clients grew significantly, with Q4 revenue reaching 18.2 billion RMB [9]. - E-commerce revenue was 39.05 billion RMB, up 10.4% from the previous year, driven by an increase in active paying users and merchants [9]. - The overseas business reported a revenue of 847 million RMB in Q4 2023, nearly doubling year-over-year, with a significant reduction in operating losses [9]. Future Projections - Revenue projections for 2024-2026 are set at 128.36 billion RMB (up 13.12%), 141.48 billion RMB (up 10.22%), and 157.92 billion RMB (up 11.62%), respectively. Net profit is expected to reach 11.99 billion RMB, 17.11 billion RMB, and 22.04 billion RMB in the same period [10][13].