KUAISHOU(01024) 华泰证券·2024-09-22 04:03Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of HKD 64.86 [8][9]. Core Insights - The company has made significant advancements in AI model technology, enhancing content generation, understanding, and recommendation, which is expected to drive platform business growth [3][10]. - Short video advertising revenue has tripled year-on-year in the first half of 2024, contributing positively to the company's overall advertising revenue [4][11]. - The company is focusing on a multi-faceted content ecosystem, including live streaming, short videos, and text, to enhance user engagement and drive e-commerce growth [5][13]. Summary by Sections AI Ecosystem - The company is implementing three strategic directions to enhance AI model development: upgrading content understanding systems, optimizing recommendation systems with the new ACT model, and improving video generation capabilities [3][10]. - The ACT model is expected to increase daily app usage time by 1 billion minutes due to its efficient processing of user behavior data [10]. Short Video Advertising - In the first half of 2024, short video advertising revenue grew threefold, now accounting for a significant portion of total advertising revenue [4][11]. - The company has over 300 million short videos, with heavy users exceeding 140 million and paying users over 40 million [4]. E-commerce Growth - The company's e-commerce GMV reached RMB 593.3 billion in the first half of 2024, growing 21% year-on-year, surpassing the overall domestic e-commerce market growth of 10% [13]. - The company is enhancing its product offerings and marketing strategies to drive user purchasing intent and streamline decision-making processes [13]. Local Life Services - The local life business has seen a GMV increase of 296% year-on-year in the second quarter of 2024, with daily paying users growing by 37% [15]. - The company is collaborating with Meituan to expand its service coverage in smaller cities [15]. Financial Projections - The adjusted net profit forecasts for 2024, 2025, and 2026 are RMB 176 billion, RMB 238 billion, and RMB 290 billion, respectively [3]. - The company is expected to achieve a revenue of RMB 127.4 billion in 2024, with a year-on-year growth of 12.31% [7][23].