M N 23 May 2024 CMB International Global Markets | Equity Research | Company Update Kuaishou (1024 HK) Bullish on earnings upside Target Price HK$97.00 Kuaishou delivered another upbeat quarter, with topline/bottom line (Previous TP HK$97.00) +17%/+10,348% YoY (1%/37% above consensus). We expect such margin Up/Downside 66.8% surprise with a HK$16bn new share repurchase program should help its re- Current Price HK$58.15 rating. We reiterate our confidence on KS’s resilient growth and earnings upside, and exp ...

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 75.00, indicating a potential upside of 29.0% from the current price of HKD 58.15 [1][11]. Core Insights - The company reported a total revenue of RMB 29.4 billion for Q1 2024, a year-on-year increase of 17%, which met expectations. The gross margin improved to 55%, with a significant increase in adjusted net profit to RMB 4.4 billion, surpassing market expectations by 37% [2]. - The report highlights continued optimization of cost and expenses, which exceeded expectations, suggesting further potential for profit adjustments [2]. - The company is expected to see a 25% year-on-year growth in e-commerce GMV in Q2 2024, driven by supply-side expansion and increased user purchases [2]. Financial Overview - Revenue projections for the company are as follows: RMB 113.47 billion in 2023, RMB 127.27 billion in 2024, and RMB 141.48 billion in 2025, with respective growth rates of 20.5%, 12.2%, and 11.2% [3][12]. - The adjusted net profit is forecasted to reach RMB 18.08 billion in 2024, reflecting a 76% increase from the previous year [2][12]. - The report indicates a significant improvement in the company's operating margin, with expectations of continued growth in profitability metrics over the next few years [12]. User Engagement and E-commerce Performance - Total user engagement time increased by 9% year-on-year, with e-commerce GMV growing by 28% compared to the previous year, driven by a 70% increase in active merchants [2][5]. - Online marketing revenue rose by 27%, benefiting from the application of smart marketing solutions and product iterations [2][9]. - The report notes a 50% year-on-year increase in mid-tier streamer support, enhancing operational efficiency despite an 8% decline in live streaming revenue [2][9]. Valuation and Market Position - The report suggests that the valuation is based on a 15x P/E ratio for 2024, with a focus on the mainland business contributing RMB 19.5 billion in profit [2][12]. - The company’s market capitalization is approximately HKD 208.33 billion, with a 52-week high of HKD 69.15 and a low of HKD 39.10 [4][12]. - The report emphasizes the ongoing improvement in revenue structure and gross margin, with marketing expense ratios still having room for optimization [2][12].

Ladies and gentlemen, hello everyone. Welcome to the 1st quarter performance telephone conference of Kuaishou Technology in 2024. Please note that this conference will be held in English. You need to log in to the English channel to listen to the third part of the presentation. Please note that today's conference is being recorded. Now, let's welcome the vice president of the company's capital market and investor relations, Matthew Johnson. Thank you, Operator. Hello, everyone. Welcome to Kuaishou Technolog ...

Financial Performance - Kuaishou Technology reported a total revenue of RMB 29.408 billion for the three months ending March 31, 2024, representing a year-on-year increase of 16.6% from RMB 25.217 billion in the same period of 2023[3]. - Gross profit for the same period was RMB 16.120 billion, with a gross margin of 54.8%, compared to RMB 11.712 billion and a gross margin of 46.4% in the previous year, reflecting a 37.6% increase in gross profit[3]. - The company achieved an adjusted net profit of RMB 4.388 billion, a significant increase of 10,347.6% compared to RMB 42 million in the same quarter of 2023[3]. - Operating profit for Q1 2024 was RMB 4 billion with an operating margin of 13.6%, compared to an operating loss of RMB 698 million in Q1 2023[29]. - The company reported a profit of RMB 4.12 billion in Q1 2024, a significant turnaround from a loss of RMB 876 million in Q1 2023[33]. - Basic earnings per share for Q1 2024 were RMB 0.95, compared to a loss per share of RMB 0.20 in the same period last year[58]. - The company reported a total comprehensive income of RMB 4,150 million for Q1 2024, compared to a loss of RMB 1,146 million in Q1 2023[59]. User Engagement - Average daily active users reached 393.8 million, up 5.2% year-on-year, while average monthly active users increased to 697.4 million, a rise of 6.6%[6]. - The average revenue per daily active user was RMB 42.3, compared to RMB 34.9 in the same quarter of 2023, indicating improved monetization[6]. - Daily active users for short video e-commerce grew nearly 100% year-over-year in Q1 2024, with significant increases in supply richness[13]. - Monthly active users reached 200 million, showing a growth of 10% year-over-year[83]. - Daily active users reached a total of 100 million, reflecting a year-over-year increase of 15%[82]. E-commerce Performance - Total e-commerce transaction value on the platform was RMB 288.072 billion, up from RMB 224.767 billion in the previous year[6]. - E-commerce GMV rose by 28.2% year-over-year to RMB 288.1 billion in Q1 2024, with monthly active buyers increasing by 22.4% to 126 million[12]. - Brand product GMV during the Spring Festival increased by over 70% compared to the previous year, with short video GMV growing over 110% year-over-year[13]. - Gross Merchandise Volume (GMV) for the quarter was reported at RMB 50 billion, representing a 20% increase compared to the previous quarter[82]. Marketing and Advertising - In Q1 2024, online marketing services revenue grew by 27.4% year-over-year to RMB 16.7 billion, accounting for 56.6% of total revenue[10]. - Active marketing customers increased by nearly 90% year-over-year in Q1 2024, driven by the application of intelligent marketing solutions[10]. - The search marketing service revenue grew by over 50% year-on-year in the first quarter of 2024, driven by optimizations in search functionality using large language model technology[9]. - The return on investment (ROI) for marketing campaigns improved to 150%, indicating effective spending strategies[83]. Operational Efficiency - The company launched a new traffic recommendation mechanism to enhance user experience and monetization efficiency[7]. - Kuaishou Technology is advancing the development of its self-researched large language model to enhance various business scenarios and improve operational efficiency[7]. - Sales and marketing expenses rose by 7.6% to RMB 9.4 billion in Q1 2024, while the percentage of total revenue decreased from 34.6% to 31.9%[25]. - Administrative expenses decreased by 49.7% to RMB 462 million in Q1 2024, primarily due to reduced employee benefits expenses[26]. International Expansion - In Q1 2024, the company's overseas business revenue reached RMB 991 million, a year-on-year increase of 193.2%[15]. - The average daily active users in key overseas markets grew steadily, with Brazil's average daily active users increasing by 13% year-on-year, and each user spending over 75 minutes daily[15]. Future Outlook - The company plans to invest approximately RMB 10 billion in resources to support quality agricultural product vendors as part of its rural revitalization initiative[16]. - Future guidance estimates revenue growth of 18% for the next quarter, projecting total revenue of RMB 12 billion[82]. - New product launches are expected to contribute an additional RMB 5 billion in revenue over the next two quarters[82]. - The company is exploring potential acquisitions to strengthen its market position, with a budget of up to RMB 3 billion allocated for this purpose[82]. Corporate Governance - The company has complied with all applicable corporate governance code provisions except for the separation of the roles of Chairman and CEO, which are held by the same individual since October 29, 2023[77]. - The company is committed to maintaining high standards of corporate governance, which is crucial for its development and shareholder protection[76]. - The company will continue to enhance its corporate governance practices to align with legal and professional standards[77]. Cash Flow and Investments - Cash and cash equivalents decreased to RMB 11.0 billion as of March 31, 2024, from RMB 12.9 billion as of December 31, 2023[53]. - Net cash generated from operating activities was RMB 5.8 billion in Q1 2024, with income tax paid amounting to RMB 217 million[55]. - The net cash used in investing activities for Q1 2024 was RMB 4.9 billion, primarily due to financial asset investments of RMB 6.5 billion and property, plant, and equipment purchases of RMB 1.4 billion[56]. - The net cash used in financing activities for Q1 2024 was RMB 2.8 billion, mainly from share repurchases of RMB 1.2 billion and settlement of notes payable of RMB 895 million[57].

2024年4月26日 公司研究 电商驱动 24Q1 利润超预期高增，估值具备向上弹性 ——快手科技（1024.HK）24Q1 业绩前瞻 要点 买入（维持） 用户：活跃用户数增势稳健，短剧等内容助力用户粘性居高位。预计 24Q1 当前价/目标价：49.10/89.1港元 快手DAU 3.91亿（yoy+4.5%），MAU 6.9亿（yoy+5%），DAU/MAU=56.9% （yoy-0.3pcts），每DAU日均使用时长124.9分钟（yoy-1.5%）。24Q1除 作者 春节外，整体并非用户旺季，但公司通过以短剧为代表的多样化内容供给，有 分析师：付天姿 望保持高用户粘性。AI技术赋能，推荐算法精准度提升带来更优的用户体验。 执业证书编号：S0930517040002 商业化：预计快手24Q1线上营销收入165.0亿元（yoy+26.3%）。电商生态 021-52523692 futz@ebscn.com 持续向好带来商家投流意愿增强，快手基于行业属性的精细化运营策略、营销 产品能力持续提升。快手电商GMV的高增长预计继续带动内循环广告强劲增 分析师：赵越 长。在消费逐步复苏大背景下，部分广告主预算有望得到 ...

[Table_MainInfo] 公司研究/传媒 证券研究报告 快手-W（1024）公司年报点评 2024年04月23日 [Table_InvestInfo] 首次覆 发展进入全面盈利时代，持续拓展场景生 投资评级 优于大市 盖 态建设和深挖用户多元变现 股票数据 0[4Ta月b2le2_日S收to盘ck价I（nf港o元] ） 45.20 [Table_Summary] 投资要点： 52周股价波动（港元） 39.10-69.15 总股本/流通A股（百万股） 4344/4344 总市值/流通市值（百万港元） 196347/196347  经调整利润净额和年内利润于 2023 年均实现扭亏为盈，公司发展进入全面 盈利时代。2023年，公司营收1134.70亿元（同比+20.5%），主要由于营销 市[T场ab表le现_R eportInfo] 服务、电商业务及直播业务的增长；毛利率 50.6%（同比+5.9pct）；销售费 [Table_QuoteInfo] 40% 用、行政开支和研发开支同比分别下降1.7%、10.4%和10.5%；年内利润扭 20% 亏为盈，盈利63.99亿元；经调整利润102.71亿元，规模 ...

快手科技 （於開曼群島註冊成立以不同投票權控制的有限公司） 01024 81024 股份代號： （ 港幣櫃台） （人民幣櫃台） 2023 目錄 公司資料 2 財務概要及營運摘要 4 主席報告 9 管理層討論與分析 16 董事會報告 39 企業管治報告 100 環境、社會及管治報告 122 獨立核數師報告 208 合併損益表 216 合併綜合收益╱（虧損）表 217 合併資產負債表 218 合併權益變動表 220 合併現金流量表 222 合併財務報表附註 224 釋義 316 公司資料 董事會 ...

Core Viewpoint - The article highlights the journey of Deng Yan, a rural creator who transitioned from urban life to becoming a successful agricultural influencer on Kuaishou, emphasizing the importance of agricultural knowledge dissemination and e-commerce in rural development [1][2][3]. Group 1: Personal Journey - Deng Yan, born in 1987, initially pursued a career in urban landscaping after graduating from Inner Mongolia Agricultural University, but later returned to her hometown to support her family's agricultural business [2][3]. - After a period of adjustment and emotional struggle, Deng Yan focused on creating effective planting solutions for farmers and established a local agricultural supply store [3][4]. Group 2: Agricultural Knowledge Sharing - Since 2013, Deng Yan's agricultural supply store has served thousands of farmers, revealing a significant gap in agricultural knowledge among them [4][5]. - In 2018, she began sharing agricultural knowledge on Kuaishou, leveraging the platform's popularity among rural users to reach a wider audience [5][6]. Group 3: E-commerce Development - Deng Yan's sales increased significantly after she started using short videos and live streaming to educate farmers about agricultural techniques and products, leading to a doubling of her store's sales in 2019 [5][6]. - By establishing an online store on Kuaishou, she has sold over 190,000 agricultural products, with online sales accounting for 90% of her total revenue [6][7]. Group 4: Future Aspirations - Deng Yan plans to recruit experienced agricultural dealers to help them utilize Kuaishou effectively, aiming to expand the reach of agricultural knowledge and products [7]. - She expressed her excitement about the future, stating her commitment to continue growing her influence in the agricultural sector through Kuaishou [7].

证券研究报告 公 2024年03月22日 司 报 告 快手-W(01024) │ 行 业： 传媒/数字媒体 港 投资评级： 买入（维持） 股 当前价格： 51.25港元 用户规模屡创新高，公司进入全面盈利时代 - 公 目标价格： 81.47港元 司 事件： 年 基本数据 报 点 公司发布 2023 财年第四季度及全年业绩公告，2023 年度公司实现营业收 总股本/流通股本(百万股) 4,350.65/4,350.65 评 入1134.7亿元，同比增长20.5%；实现经调整利润102.7亿元，较2022年 流通市值(百万港元) 222,971.02 亏损57.5亿元扭亏为盈。 每股净资产(元) 10.47 资产负债率(%) 53.58  得益于内容及商业生态的优化，快手应用用户规模屡创新高 一年内最高/最低(港元) 72.50/38.40 得益于以用户和合作伙伴为核心，打造并维护普惠健康内容及商业生态的 长期发展战略，快手应用的用户规模持续创新高，2023年第四季度平均月 股价相对走势 活用户数突破7亿（同比增长9.4%）、平均日活用户达3.83亿（同比增长 快手-W 恒生指数 4.5%），单日活用户的日均使 ...

证券研究报告 | 年报点评报告 2024年04月09日 快手-W（01024.HK） 内循环亮眼，盈利超预期 2023Q4 费用率持续优化，利润再超预期。快手 2023Q4 实现收入 326 亿元， 买入（维持） yoy+15%。其中 ，广告 / 直播/ 电商 及其他收入 182/100/43 亿元， 股票信息 yoy+21%/+0%/+36%。公司Q4 毛利率 53.1%，yoy+7.6pct。公司 Q4 销售、管 理、研发费用率分别为 31.3%/2.3%/10.1%，yoy-3.1/-1.3/-2.1pct。公司 Q4 经调 行业 互联网软件与服务 整净利43.6亿元，经调整净利率13.4%、yoy+13.6pct，超市场预期。Q4快手DAU、 前次评级 买入 MAU为3.825/7.004亿，yoy+4.5%/9.4%。Q4日活用户日均使用时长124.5分钟。 4月8日收盘价(港元) 49.65 2023全年收入1135亿元，yoy+20.5%。经调整净利102.7亿元，同比扭亏为盈。 总市值(百万港元) 215,649.12 总股本(百万股) 4,343.39 电商：买家数持续增长，泛货架、短视频场 ...