KUAISHOU(01024) 东方证券·2024-11-25 09:05Investment 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]