KUAISHOU(01024) 光大证券·2024-11-24 02:43Investment 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].