KUAISHOU(01024) 东方证券·2024-05-27 00:02Investment Rating - The report maintains a "Buy" rating for the company with a target price of 73.82 HKD per share, based on a PE valuation of 17x for the year 2024 [3][5][10]. Core Insights - User growth remains healthy with 1Q24 DAU increasing by 5.2% year-over-year to 394 million and MAU up by 6.6% to 697 million. Average daily usage time per user is 129.5 minutes, reflecting a 2.1% year-over-year increase [1]. - Advertising revenue in 1Q24 grew by 27.4% year-over-year to 16.7 billion CNY, with active marketing clients increasing by 90%. The internal advertising cycle continues to grow rapidly, benefiting from algorithm optimization [1]. - E-commerce GMV in 1Q24 rose by 28.2% year-over-year to 288.1 billion CNY, with monthly active paying users increasing by 22.4% to 126 million [1]. - Live streaming revenue decreased by 8% year-over-year to 8.6 billion CNY, aligning with expectations due to ecosystem governance [1]. - Adjusted net profit for 1Q24 reached 4.4 billion CNY, exceeding expectations, with a gross margin of 54.8% [1][2]. Summary by Sections User Metrics - 1Q24 DAU: 394 million (+5.2% YoY) - 1Q24 MAU: 697 million (+6.6% YoY) - Average daily usage time: 129.5 minutes (+2.1% YoY) [1]. Advertising Performance - 1Q24 advertising revenue: 16.7 billion CNY (+27.4% YoY) - Advertising as a percentage of total revenue: 56.6% - Active marketing clients: +90% YoY [1]. E-commerce Insights - 1Q24 GMV: 288.1 billion CNY (+28.2% YoY) - Monthly active paying users: 126 million (+22.4% YoY) - Monthly active merchants: +70% YoY [1]. Live Streaming - 1Q24 live streaming revenue: 8.6 billion CNY (-8% YoY) - Expected 2Q24 decline: 18% [1]. Financial Performance - Adjusted net profit for 1Q24: 4.4 billion CNY - Gross margin: 54.8% (+8.4 percentage points YoY) - Sales expenses: 9.4 billion CNY, with a sales expense ratio decrease of 2.7 percentage points YoY [1][2].