Changjiang Securities·2024-05-24 08:02Investment Rating - The investment rating for Kuaishou-W (1024.HK) is "Buy" and is maintained [5]. Core Views - Kuaishou reported a strong Q1 2024 performance with revenue of 29.41 billion CNY, a year-on-year increase of 16.6%, and a Non-GAAP net profit of 4.39 billion CNY, which is over 103 times higher than the previous year, marking a record high for a single quarter [2][6][7]. Revenue Summary - In Q1 2024, Kuaishou achieved online marketing service revenue of 16.65 billion CNY, up 27.4% year-on-year, accounting for 56.6% of total revenue. The number of advertisers increased by nearly 90% compared to the same period last year, driven by the application of smart marketing solutions [6][7]. - Live streaming revenue was 8.58 billion CNY, down 8.0% year-on-year, primarily due to the platform's ongoing efforts to enhance live streaming ecosystem governance [6][7]. - Other service revenue reached 4.18 billion CNY, a year-on-year increase of 47.6%, mainly attributed to the growth in e-commerce [6][7]. E-commerce Performance - Kuaishou's e-commerce GMV (Gross Merchandise Volume) grew by 28.2% year-on-year to 288.1 billion CNY in Q1 2024. The general merchandise GMV significantly outperformed the market, accounting for about 25% of total GMV, with daily active merchants and buyers increasing by over 50% and 60% year-on-year, respectively [6][7]. User Growth Metrics - Daily active users (DAUs) grew by 5.2% year-on-year to 394 million, while monthly active users (MAUs) increased by 6.6% to 697 million. Total user engagement time also rose by 8.6% year-on-year [6][7]. Profitability Insights - Kuaishou's Non-GAAP net profit for Q1 2024 was 4.39 billion CNY, reflecting a year-on-year increase of over 103 times. Domestic operating profit reached 3.99 billion CNY, up 314.4% year-on-year, driven by a 14.2% increase in domestic revenue [7]. - The gross profit was 16.12 billion CNY, a 37.6% year-on-year increase, with a gross margin of 54.8%, up 8.4 percentage points year-on-year [7]. Stock Buyback Plan - Kuaishou announced a new stock buyback plan, intending to repurchase shares worth up to 16 billion HKD over the next three years, with 3.09 billion HKD already repurchased [7]. Earnings Forecast - The company is expected to leverage AI technology to enhance efficiency across various business scenarios. Revenue forecasts for 2024 and 2025 are projected to reach 126.005 billion CNY and 142.011 billion CNY, respectively, with Non-GAAP net profits of 17.313 billion CNY and 24.302 billion CNY [7].