2024-05-24 09:32Investment Rating - The report maintains a "Buy" rating for the company [1][4] Core Views - The company reported strong profit growth in Q1 2024, with revenue reaching 29.41 billion RMB, a year-on-year increase of 16.6%. The IFRS net profit was 4.12 billion RMB, a significant recovery from a net loss of 0.876 billion RMB in Q1 2023 [4][5] - The company continues to enhance operational efficiency, with an adjusted net profit of 4.39 billion RMB, reflecting a staggering year-on-year growth of 10,348% and an adjusted net profit margin of 14.9% [4][5] - User engagement remains robust, with monthly active users reaching 697 million and daily active users at 394 million, representing year-on-year growth of 6.6% and 5.2% respectively [4][5] - The advertising revenue for Q1 2024 was 16.65 billion RMB, up 27.4% year-on-year, driven by strong growth in short videos, gaming, and educational marketing [4][5] - E-commerce gross merchandise volume (GMV) grew by 28.2% year-on-year, reaching 288.1 billion RMB, with active buyers increasing by 22.4% to 126 million [4][5] Financial Summary - The company’s revenue for 2024 is projected to be 128.52 billion RMB, with a year-on-year growth rate of 13.27% [6] - The adjusted net profit for 2024 is estimated at 17.12 billion RMB, with a growth rate of 66.65% [6] - The company’s price-to-earnings (P/E) ratio is expected to decrease from 23.29 in 2023 to 13.85 in 2024, indicating improved valuation [6][5] - The gross profit margin for Q1 2024 reached 54.8%, an increase of 8.4 percentage points year-on-year, attributed to a higher proportion of high-margin advertising and e-commerce businesses [4][5]