KUAISHOU(01024) 东方证券·2024-07-14 05:31Investment Rating - The report maintains a "Buy" rating for the company [1][2] Core Insights - The company is accelerating its AI commercialization efforts, with significant advancements in its self-developed AI models and applications [1] - The AI model developments include a language model achieving GPT-4 level performance, a recommendation model expected to increase user watch time by 400 million minutes daily, and a visual generation model ranking second globally [1] - The company has seen an 8-fold increase in monthly active users for its AIGC services and a 64-fold increase in GMV from January to June 2024 [1] - During the 618 shopping festival, the company's short video e-commerce performance outpaced the overall market, with GMV growth of 16% compared to competitors [1] Financial Projections - The adjusted net profit estimates for 2024, 2025, and 2026 are projected at 170.15 billion, 248.16 billion, and 316.27 billion CNY respectively [2] - The company is valued at 15x PE for 2024, leading to a target price of 64.05 HKD per share, equating to a market value of 2,552 billion CNY or 2,795 billion HKD [2][8] Company Performance Metrics - The company reported a revenue of 94,183 million CNY in FY2022, with a projected growth to 155,230 million CNY by FY2026 [7] - The adjusted net profit for FY2024 is expected to be 170.15 billion CNY, with a significant increase in profitability projected in subsequent years [7][10] - The gross margin is expected to improve from 44.7% in FY2022 to 57.3% by FY2026 [7]