Investment Rating - The investment rating for the company is "Buy" (maintained) [3] Core Insights - The company's Q3 2024 revenue reached 31.1 billion CNY, representing a year-over-year increase of 11.4%, which aligns with expectations [2] - Adjusted net profit for Q3 2024 was 3.95 billion CNY, up 24.4% year-over-year, slightly exceeding consensus estimates [2] - Daily Active Users (DAU) reached a record high of 408 million, growing 5.4% year-over-year, while Monthly Active Users (MAU) increased by 4.3% to 714 million [2] - E-commerce Gross Merchandise Volume (GMV) for Q3 2024 was 334.2 billion CNY, up 15.1% year-over-year, driven by strategic initiatives and a significant increase in new merchant registrations [2] - Online marketing revenue grew by 20.0% year-over-year to 17.63 billion CNY, primarily fueled by external marketing clients and the expansion of the In-Apps Ads short video model [2] - The company expects total revenue for 2024-2026 to be 127.29 billion CNY, 141.41 billion CNY, and 155.69 billion CNY respectively, with adjusted net profits projected at 17.64 billion CNY, 22.67 billion CNY, and 27.83 billion CNY [2] Financial Summary - Total revenue for 2023 is projected at 113.47 billion CNY, with a growth rate of 20% [6] - The company anticipates a significant increase in adjusted net profit from 10.27 billion CNY in 2023 to 17.64 billion CNY in 2024, reflecting a growth rate of 72% [6] - Earnings per share (EPS) is expected to rise from 2.36 CNY in 2024 to 6.45 CNY by 2026 [6] - The price-to-earnings (P/E) ratio is projected to decrease from 20.86 in 2024 to 6.40 by 2026, indicating improved valuation metrics over time [6]

Investment Rating - The report maintains a "Buy" rating for Kuaishou Technology (快手) [4][8] Core Views - Kuaishou's Q3 2024 revenue reached 31.131 billion RMB, a year-on-year increase of 11.4%, driven by a 20% growth in core business revenue [4][5] - The company is experiencing steady user growth, with Daily Active Users (DAU) and Monthly Active Users (MAU) reaching 408 million and 714 million respectively, reflecting year-on-year growth of 5.4% and 4.3% [5] - Kuaishou's e-commerce Gross Merchandise Volume (GMV) for Q3 2024 was 334.2 billion RMB, up 15% year-on-year, with a significant increase in active merchants [6][7] Summary by Sections Market Data - Closing price as of November 25, 2024, was HKD 46.35, with a market capitalization of HKD 1,999.35 billion [2] Financial Performance - Q3 2024 adjusted net profit was 3.948 billion RMB, a 24.4% increase year-on-year, with a profit margin of 12.7% [4] - Revenue projections for 2024-2026 have been adjusted upwards to 127.3 billion, 145.3 billion, and 160.9 billion RMB respectively [8][9] User Engagement - User engagement metrics show an average daily usage time of 132.2 minutes, with total usage time increasing by 7.3% year-on-year [5] Commercialization Progress - Online marketing revenue for Q3 2024 was 17.6 billion RMB, a 20% increase year-on-year, with significant growth in various sectors [6] - The company has launched AI applications that have rapidly gained traction, with over 5 million users and significant content generation [7] Future Outlook - The report anticipates continued user growth and commercialization in Q4 2024, with expectations of narrowing overseas losses [7][8]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 61.62 per share, based on a 14x PE valuation for 2024 [1][6][10]. Core Insights - The company's performance in Q3 2024 met expectations, with a focus on the release of synergistic effects in e-commerce across multiple domains [1][9]. - Daily Active Users (DAU) reached 408 million, showing a year-on-year increase of 5.4%, while Monthly Active Users (MAU) grew by 4.3% to 714 million [1][9]. - Advertising revenue increased by 20.0% year-on-year to CNY 176 billion, accounting for 56.6% of total revenue [1][9]. - E-commerce Gross Merchandise Volume (GMV) rose by 15.1% year-on-year to CNY 334.2 billion, with a monthly paid user count of 133 million [1][9]. Summary by Sections User Growth - DAU reached 408 million, MAU at 714 million, and average daily usage time increased by 1.8% to 132 minutes [1][9]. - The company expects DAU to maintain slight growth in Q4 2024, around 400 million [1][9]. Advertising Performance - Q3 2024 advertising revenue was CNY 176 billion, with a year-on-year growth of 20.0% [1][9]. - The internal advertising cycle showed stable growth, while external advertising growth was significant, particularly in media and local life sectors [1][9]. E-commerce Insights - E-commerce GMV grew by 15.1% year-on-year to CNY 334.2 billion, with a monthly paid user count of 133 million [1][9]. - The company anticipates a 14% year-on-year growth in GMV for Q4 2024, driven by e-commerce commissions [1][9]. Financial Performance - Adjusted net profit for Q3 2024 reached CNY 39.5 billion, with a gross margin of 54.3% [1][9]. - The report projects adjusted net profits of CNY 175.51 billion for 2024, with a slight upward revision due to better-than-expected cost control [6][10].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 61.62 [1] Core Views - The company achieved its DAU target of 400 million, with DAU increasing by 5.4% YoY to 408 million and MAU growing by 4.3% YoY to 714 million in 3Q24 [1] - User engagement improved, with daily average time spent per user increasing by 1.8% YoY to 132 minutes, and total user time spent growing by 7.3% YoY [1] - Advertising revenue grew by 20.0% YoY to RMB 17.6 billion, accounting for 56.6% of total revenue, with significant growth in external loop advertising, particularly in short drama marketing [1] - E-commerce GMV increased by 15.1% YoY to RMB 334.2 billion, with monthly paying users (MPU) reaching 133 million, up 10.8% YoY [1] - Live streaming revenue declined by 3.9% YoY to RMB 9.3 billion, better than expected, with the number of signed agencies and hosts increasing by over 40% and 60% YoY, respectively [1] - Adjusted net profit for 3Q24 reached RMB 3.95 billion, with a gross margin of 54.3%, up 2.6 percentage points YoY [1] Financial Forecasts - Revenue is expected to grow by 12.1% YoY in 2024E, reaching RMB 127.2 billion, with a gross margin of 54.7% [6] - Adjusted net profit for 2024E is forecasted at RMB 17.55 billion, with a net margin of 13.8% [6] - The company is valued at 14x PE for 2024E, with a target valuation of RMB 245.7 billion (HKD 265.8 billion) [6][10] Operational Highlights - The company leveraged its position as the official broadcaster for the 2024 Paris Olympics, with related content exposure reaching 310.6 billion views and 640 million users engaging with Olympic content [1] - Search functionality saw significant growth, with MAU exceeding 500 million and daily searches increasing by 20% YoY to over 700 million, peaking at over 800 million searches per day [1] - E-commerce initiatives, including the "818" promotion, saw GMV grow by over 24% YoY, with short video-driven GMV increasing by over 40% YoY [1]

Investment Rating - The report maintains a "Buy" rating for Kuaishou Technology [10] Core Insights - Kuaishou's Q3 2024 revenue reached 31.131 billion CNY, a year-on-year increase of 11.4%, with Non-GAAP net profit at 3.948 billion CNY, up 24.4% [6][8] - The company's online marketing service revenue grew by 20.0% year-on-year, contributing 56.6% to total revenue, driven by AI optimization in advertising [6][7] - Daily active users (DAU) surpassed 400 million for the first time, with a year-on-year growth of 5.4% [7] Summary by Sections Revenue Performance - Kuaishou's Q3 2024 online marketing service revenue was 17.634 billion CNY, up 20.0% year-on-year, while live streaming revenue was 9.338 billion CNY, down 3.9% [6][7] - Other services, including e-commerce, generated 4.159 billion CNY, a 17.5% increase year-on-year, with GMV reaching 334.2 billion CNY, up 15.1% [6][7] User Metrics - Average daily active users reached 408 million, with average monthly active users at 714 million, reflecting a year-on-year increase of 4.3% [7] - In overseas markets, DAU in Brazil grew by 9.7% year-on-year [7] Profitability - Kuaishou's gross margin improved to 54.3%, with an adjusted net profit margin of 12.7% [7] - R&D expenses increased by 4.5% to 3.1 billion CNY, while sales and marketing expenses rose by 15.9% to 10.4 billion CNY [7] Future Outlook - Revenue projections for 2024 and 2025 are estimated at 127.1 billion CNY and 139.7 billion CNY, respectively, with Non-GAAP net profits of 17.7 billion CNY and 21.7 billion CNY [8]

Investment Rating - The report maintains a "Buy" rating for Kuaishou Technology (1024.HK) with a target price of HKD 60.3 [1][46]. Core Insights - Kuaishou's total revenue for Q3 2024 reached RMB 31.1 billion, reflecting a year-on-year growth of 11.4%, slightly above market expectations [1][20]. - Adjusted net profit for Q3 2024 was RMB 3.95 billion, slightly exceeding expectations, with a year-on-year growth of 24.4% [1][25]. - The marketing expense ratio increased due to promotional activities, while the company continues to focus on cost reduction and efficiency improvements [1][26]. Financial Performance - Q3 2024 revenue breakdown: - Online marketing revenue: RMB 17.6 billion, up 20% year-on-year, accounting for 56.6% of total revenue [1][20]. - Live streaming rewards revenue: RMB 9.3 billion, down 3.9% year-on-year, accounting for 30% [1][20]. - Other services (mainly e-commerce): RMB 4.16 billion, up 17.5% year-on-year, accounting for 13.4% [1][20]. - Gross margin for Q3 2024 was 54.3%, up 2.6 percentage points year-on-year [1][25]. User Growth and Engagement - Daily Active Users (DAU) reached 408 million, growing 5.4% year-on-year, while Monthly Active Users (MAU) reached 714 million, growing 4.3% year-on-year [1][32]. - Average daily usage time per DAU was 132.2 minutes, up 1.8% year-on-year [1][32]. Commercialization and Business Segments - Online marketing revenue continues to grow, driven by AI and algorithm improvements, with external marketing services showing significant growth [1][35]. - E-commerce revenue showed stable growth, with Gross Merchandise Volume (GMV) reaching RMB 334.2 billion, up 15.1% year-on-year [1][38]. - Live streaming rewards revenue decline is slowing, with a focus on diversifying content and enhancing the live streaming ecosystem [1][44]. Valuation and Future Outlook - The adjusted net profit forecast for 2024 has been slightly raised to RMB 17.6 billion, while forecasts for 2025 and 2026 have been lowered due to increased competition and marketing expenses [1][46]. - The report anticipates continued growth in user engagement and a healthy ecosystem, maintaining a target valuation multiple for different business segments [1][46].

Investment Rating - The report maintains a "Buy" rating for the company [3][4]. Core Insights - The company's overall performance met expectations, with Q3 2024 total revenue reaching 31.131 billion RMB, a year-on-year increase of 11.4%, slightly above Bloomberg's consensus estimate of 30.030 billion RMB, driven by growth in online marketing services and other services [3]. - Adjusted net profit for Q3 2024 was 3.948 billion RMB, up 24.4% year-on-year, also slightly exceeding Bloomberg's consensus estimate of 3.909 billion RMB, with an adjusted net profit margin of 12.7% [3]. - Daily active users (DAU) surpassed 400 million, reaching 407.5 million, a year-on-year increase of 5.4%, with average daily usage time per user at 132 minutes [3]. - The online marketing services segment showed strong performance, with revenue of 17.634 billion RMB in Q3 2024, a year-on-year increase of 20.0%, accounting for 56.6% of total revenue [3]. - E-commerce gross merchandise volume (GMV) reached 334.2 billion RMB in Q3 2024, a year-on-year increase of 15.1%, with active buyers increasing by 12.2% [3]. Financial Summary - For the fiscal year 2023, the company reported revenue of 113.47 billion RMB, with a projected revenue of 127.23 billion RMB for 2024, reflecting a growth rate of 12.1% [2]. - The gross profit margin is expected to improve from 50.6% in 2023 to 54.6% in 2024 [2]. - Adjusted net profit is forecasted to grow from 10.27 billion RMB in 2023 to 17.71 billion RMB in 2024, with an adjusted net profit margin increasing from 9.1% to 13.9% [2].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - The company has shown significant improvement in gross margin, with a year-on-year increase of 2.6 percentage points, reaching 54.3% in Q3 2024. Revenue for Q3 2024 was 31.13 billion, reflecting an 11.4% year-on-year growth. Adjusted net profit increased by 24.4% year-on-year to 3.95 billion [4] - The company is expected to maintain its profitability growth, with projected net profits of 15.623 billion, 19.572 billion, and 23.361 billion for 2024, 2025, and 2026 respectively, corresponding to EPS of 3.6, 4.5, and 5.4 [4] Summary by Sections Financial Performance - Q3 2024 revenue was 311.3 billion (up 11.4% YoY), with adjusted net profit at 39.5 billion (up 24.4% YoY) and adjusted EBITDA at 55.8 billion (up 12% YoY). For the first three quarters of 2024, total revenue reached 915.1 billion (up 13.1% YoY) [4] - The company’s revenue structure shows online marketing service revenue at 176 billion (up 20% YoY), driven by the successful implementation of the IAA model, leading to a more than 300% increase in short video marketing consumption [7] User Growth and Engagement - The platform's Daily Active Users (DAU) reached 408 million (up 5.4% YoY), while Monthly Active Users (MAU) were 714 million (up 4.3% YoY). The average daily online marketing revenue per user was 43.3 (up 13.9% YoY) [8] Market Expansion and AI Development - The company is expanding internationally, with the launch of the Kwai Shop e-commerce platform in Brazil, covering all 27 states. The AI capabilities are also being enhanced with the release of the 可灵AI 1.5 version, which supports content creation [8]

Investment Rating - The report maintains an "Outperform" rating for Kuaishou-W (01024 HK) [6][29] Core Views - Kuaishou's DAU exceeded 400 million with steady growth in e-commerce GMV [2] - Revenue increased by 11% YoY with adjusted net profit margin up by 1 percentage point [2] - Total traffic increased by 7% YoY in Q3 2024, with DAU surpassing 400 million [15] Financial Performance - Q3 2024 revenue reached 31 1 billion yuan, up 11% YoY [2] - Gross margin improved to 54 3%, up 2 6 percentage points YoY [2] - Adjusted net profit for Q3 2024 was 3 95 billion yuan, with an adjusted net profit margin of 12 7% [2] - Domestic revenue grew by 9% YoY to 29 8 billion yuan, while overseas revenue was 1 33 billion yuan with an operating loss of 150 million yuan [2] User Metrics - MAU reached 714 million in Q3 2024, up 4% YoY [15] - DAU reached 408 million in Q3 2024, up 5% YoY [15] - Average daily time spent per user increased to 132 minutes, up 2% YoY [15] Commercialization - E-commerce GMV grew by 15% YoY to 334 2 billion yuan in Q3 2024 [22] - Advertising revenue increased by 20% YoY to 17 6 billion yuan, with out-loop advertising growing by 30% YoY [26] - Live streaming revenue declined by 4% YoY to 9 34 billion yuan [26] Future Projections - Revenue is expected to grow by 10 8% in 2024E, reaching 125 7 billion yuan [5] - Adjusted net profit is projected to be 17 7 billion yuan in 2024E, up 72 6% YoY [5] - E-commerce GMV is expected to grow by 14% in Q4 2024 [22] Valuation - The fair value range is estimated at 70 00 - 93 00 HKD [6] - The current share price is 52 55 HKD, with a market cap of 226 7 billion HKD [6]

Investment Rating - The report maintains a "Buy" rating for Kuaishou Technology with a target price adjusted to HKD 55, indicating a potential upside of 19% from the current price of HKD 46.4 [2][5][21]. Core Insights - Kuaishou Technology's Q3 2024 revenue reached RMB 31.1 billion, representing a year-on-year growth of 11.4%, while adjusted net profit was RMB 3.95 billion, up 24% year-on-year, aligning with market expectations [1]. - The company's daily active users (DAU) grew to 408 million, a 5.4% increase year-on-year, and monthly active users (MAU) reached 714 million, up 4.3% year-on-year, indicating stable overall traffic growth [1]. - Advertising revenue for Q3 2024 was RMB 17.6 billion, a 20% year-on-year increase, primarily driven by external circulation advertising, particularly in media, e-commerce, and local services [1][2]. - E-commerce gross merchandise volume (GMV) was RMB 334.2 billion, growing 15.1% year-on-year, supported by a 12.2% increase in active buyers [2]. Summary by Sections Financial Performance - Q3 2024 revenue was RMB 31.1 billion, with a year-on-year growth of 11.4% [1]. - Adjusted net profit for Q3 2024 was RMB 3.95 billion, reflecting a 24% increase year-on-year [1]. - Q3 2024 advertising revenue was RMB 17.6 billion, up 20% year-on-year, with external circulation advertising as the main growth driver [1][2]. User Metrics - DAU reached 408 million, a 5.4% increase year-on-year [1]. - MAU was 714 million, growing 4.3% year-on-year [1]. - Daily average usage time was 132 minutes, with total traffic increasing by 7.3% year-on-year [1]. E-commerce Insights - E-commerce GMV for Q3 2024 was RMB 334.2 billion, a 15.1% year-on-year increase [2]. - The number of active buyers increased by 12.2% to 133 million [2]. - The gross margin for Q3 2024 was 54.3%, with a year-on-year increase of 1.2 percentage points [2].