GOLDEN SUN SECURITIES·2024-04-08 16:00Investment Rating - The report maintains a "Buy" rating for Kuaishou-W (01024.HK) [3] Core Views - Kuaishou's Q4 2023 results exceeded market expectations, with revenue reaching 32.6 billion yuan, a year-on-year increase of 15%. The adjusted net profit was 4.36 billion yuan, with an adjusted net profit margin of 13.4%, up 13.6 percentage points year-on-year [1][2] - The company is experiencing strong growth in its e-commerce segment, with Q4 GMV reaching 403.9 billion yuan, a year-on-year increase of 29%. The average monthly number of buyers reached 130 million, with a penetration rate of 18.6% [1] - Kuaishou's advertising revenue grew by 21% year-on-year in Q4, accounting for 56% of total revenue, driven by both internal and external marketing efforts [1][2] Financial Performance Summary - For the full year 2023, Kuaishou achieved total revenue of 113.5 billion yuan, a year-on-year increase of 20.5%, and an adjusted net profit of 10.27 billion yuan, marking a return to profitability [1][2] - The report forecasts revenue growth for 2024-2026 at 11%, 15%, and 11% respectively, with adjusted net profits expected to grow significantly [2][9] - Key financial metrics include a projected adjusted net profit of 16.16 billion yuan in 2024, with a net profit margin of 12.9% [9][10] User Engagement and Growth - Kuaishou's daily active users (DAU) and monthly active users (MAU) reached 382.5 million and 700.4 million respectively in Q4 2023, with year-on-year growth of 4.5% and 9.4% [1] - The average daily usage time per active user was 124.5 minutes, indicating strong user engagement [1] E-commerce and Advertising Segments - The e-commerce segment is expected to maintain high growth rates, supported by an expanding supply side and diverse product offerings [1][2] - The advertising segment is benefiting from a robust internal marketing strategy and a recovering external market, with significant growth in active marketing clients [1][2] AI and Innovation - Kuaishou is advancing its AI capabilities, with plans to develop a large language model and enhance its multi-modal applications, which are expected to improve user experience and operational efficiency [2]