Huaan Securities·2024-05-30 09:31Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a significant profit exceeding expectations for Q1 2024, leading to an upward revision of full-year profit forecasts [3][4] - Q1 2024 revenue reached 294.08 billion RMB, a year-over-year increase of 16.6%, surpassing Bloomberg's expectation of 290.44 billion RMB [3] - Adjusted net profit for Q1 2024 was 43.88 billion RMB, significantly higher than the expected 31.98 billion RMB [3] - Domestic revenue was 284.17 billion RMB (YoY +14.2%), while international revenue surged to 9.91 billion RMB (YoY +193.2%) [3] - The company is focusing on enhancing user engagement through rich content supply and algorithm optimization, resulting in a steady increase in daily active users (DAU) and monthly active users (MAU) [3][4] Summary by Sections Financial Performance - Q1 2024 total revenue was 294.08 billion RMB, with a YoY growth of 16.6% [3] - Adjusted net profit reached 43.88 billion RMB, exceeding expectations [3] - The company expects total revenue for 2024-2026 to be 1275.8 billion RMB, 1455.7 billion RMB, and 1640.5 billion RMB respectively [4] User Engagement - DAU reached 394 million (YoY +5.2%) and MAU reached 697 million (YoY +6.6%) [3] - Daily average usage time per user was 129.5 minutes [3] - The company has enhanced its search capabilities using large language models, resulting in a 15% increase in search users [3] Online Marketing Services - Online marketing service revenue for Q1 2024 was 166.50 billion RMB, a YoY increase of 27.4% [3] - The company is leveraging AI to provide intelligent marketing solutions, with significant growth in automated advertising solutions [3][4] E-commerce and Other Services - Other services revenue reached 41.83 billion RMB, with e-commerce GMV growing by 28.2% to 2881 billion RMB [3] - Monthly active buyers reached 126 million, a YoY increase of 22.4% [3] International Business - International revenue for Q1 2024 was 9.91 billion RMB, with a YoY increase of 193.2% [4] - The company is focusing on localizing its overseas strategy, leading to a reduction in operating losses [4] Stock Buyback - The company plans to repurchase up to 16 billion HKD of shares over the next three years, reflecting management's confidence in the company's value [4]