Huachuang Securities·2024-05-26 17:01Investment Rating - The report maintains a "Buy" rating for Kuaishou-W (01024.HK) [1][3] Core Views - Kuaishou's Q1 2024 financial performance is impressive, with total revenue reaching 29.4 billion RMB, a year-on-year increase of 16.6%, surpassing market expectations [1] - The company's net profit for Q1 2024 was 4.1 billion RMB, marking a significant turnaround from losses in the previous year, and adjusted net profit reached 4.4 billion RMB, exceeding market expectations [1] - The report highlights the strong growth in both advertising and e-commerce segments, indicating improved monetization efficiency [1] Financial Performance Summary - Revenue Growth: Kuaishou's Q1 total revenue was 29.4 billion RMB, up 16.6% year-on-year, exceeding the expected 29.04 billion RMB [1] - User Metrics: Daily Active Users (DAU) reached 394 million, a 5.2% increase year-on-year, while Monthly Active Users (MAU) reached 697 million, up 6.6% year-on-year [1] - Profitability: Gross margin improved to 54.8%, significantly higher than the expected 52.7% and up from 46.4% in the same period last year [1] - Advertising Revenue: Q1 advertising revenue was 16.7 billion RMB, a 27.4% increase year-on-year, driven by both internal and external advertising demand [1] - E-commerce Performance: Other services revenue, including e-commerce, reached 4.2 billion RMB, a 48% increase year-on-year, with e-commerce GMV growing by 28.2% [1] - Live Streaming Revenue: Live streaming revenue was 8.58 billion RMB, down 8% year-on-year, aligning with the company's strategic adjustments [1] Future Outlook - The report projects continued improvement in profitability and shareholder returns, with a target market capitalization of 308.8 billion HKD for 2024, corresponding to a target price of 71.15 HKD per share [1][3] - Revenue forecasts for 2024-2026 have been slightly adjusted upwards, with expected revenues of 129.3 billion RMB, 145.3 billion RMB, and 158.8 billion RMB respectively [1][11]