Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Equity Bottom-Up

<ul>
<li>Kuaishou reported C4Q23 revenue, IFRS OP, and IFRS net income in line, 31%, and 51% vs.  our estimates; and in line, 43%, and 67% vs. consensus.</li>
<li>The significant profit beat was mainly due to the rich content supply on the platform that led to organic traffic influx, resulted in marketing costs reductions. </li>
<li>We raised our TP by HK$2 to HK$81, implies 20X PE, vs. current trading at 13X PE for 2025.</li>
</ul>


Kuaishou reported C4Q23 revenue, IFRS OP, and IFRS net income in line, 31%, and 51% vs.  our estimates; and in line, 43%, and 67% vs. consensus.
The significant profit beat was mainly due to the rich content supply on the platform that led to organic traffic influx, resulted in marketing costs reductions. 
We raised our TP by HK$2 to HK$81, implies 20X PE, vs. current trading at 13X PE for 2025.


[Kuaishou (1024 HK, BUY, TP HK$81) TP Change]: Prime Beneficiary of Playlet Induced Traffic

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>We turn more bullish on Kuaishou’s (KS) margin enhancement ahead, with ads &amp; ecommerce share gains to continue.</li><li>KS delivered solid 4Q23 results, with inline revenue and upbeat bottom line.</li><li>For FY24E, we expect total revenue +10.6% YoY, with livestreaming/ads/other services revenue -8%/+20%/+24% YoY. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

We turn more bullish on Kuaishou’s (KS) margin enhancement ahead, with ads &amp; ecommerce share gains to continue.KS delivered solid 4Q23 results, with inline revenue and upbeat bottom line.For FY24E, we expect total revenue +10.6% YoY, with livestreaming/ads/other services revenue -8%/+20%/+24% YoY. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kuaishou (1024 HK) - More Bullish on Margin Improvement

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>Operating profit and its margin reached historical high in 4Q23.</li>
<li>Monthly active user base continued to expand, which is rare for other apps.</li>
<li>GMV (Gross Merchandise Value) of the live broadcasting sales increased rapidly by 29% YoY in 4Q23.</li>
</ul>


Operating profit and its margin reached historical high in 4Q23.
Monthly active user base continued to expand, which is rare for other apps.
GMV (Gross Merchandise Value) of the live broadcasting sales increased rapidly by 29% YoY in 4Q23.


KS / Kuaishou (1024 HK): 4Q23, Historical High Operating Profit

<ul>
<li>We believe total revenue will increase by 17% YoY in 4Q23 and 15% in 2024.</li>
<li>We also believe KS will see historical high operating profit in 4Q23 and the year 2023.</li>
<li>We conclude that KS has an upside of 92% and a price target of HK$90. Buy.</li>
</ul>


We believe total revenue will increase by 17% YoY in 4Q23 and 15% in 2024.
We also believe KS will see historical high operating profit in 4Q23 and the year 2023.
We conclude that KS has an upside of 92% and a price target of HK$90. Buy.


KS (1024 HK) 4Q23 Earnings Preview: Will See Historical Profit

<ul>
<li>We expect Kuaishou to report C4Q23 revenue, IFRS op. profit and IFRS net income in-line, 34% and 29% vs. consensus, thanks to margin improvements;</li>
<li>Playlet continued to generate significant organic traffic, leading to decreasing sales marketing cost and growth in advertising inventories. We further expect AI to drive playlet market expansions;</li>
<li>E-Commerce GMV growth was robust. Kuaishou will likely increase take rate in the future. We maintain BUY and raise TP to HK$79, implying an 17x PE.</li>
</ul>


We expect Kuaishou to report C4Q23 revenue, IFRS op. profit and IFRS net income in-line, 34% and 29% vs. consensus, thanks to margin improvements;
Playlet continued to generate significant organic traffic, leading to decreasing sales marketing cost and growth in advertising inventories. We further expect AI to drive playlet market expansions;
E-Commerce GMV growth was robust. Kuaishou will likely increase take rate in the future. We maintain BUY and raise TP to HK$79, implying an 17x PE.


[Kuaishou (1024 HK, BUY, TP HK$79) TP Change]: Robust Organic Traffic Supports Robust Growth

China

Kuaishou Technology operates as a content community and social platform. The Company helps users create, upload and watch short videos on mobile devices. Kuaishou Technology offers services worldwide.

Kuaishou Technology (1024 HK)

[Kuaishou (1024 HK, BUY, TP HK$81) TP Change]: Prime Beneficiary of Playlet Induced Traffic

Kuaishou beats revenue and profit estimates in Q4 due to organic traffic growth and reduced marketing costs, leading to a raised price target of...

Blue Lotus Research Institute

Kuaishou (1024 HK) - More Bullish on Margin Improvement

We turn more bullish on Kuaishou’s (KS) margin enhancement ahead, with ads & ecommerce share gains to continue. KS delivered solid 4Q23 results,...

CMB International

KS / Kuaishou (1024 HK): 4Q23, Historical High Operating Profit

Operating profit hit historical high. Monthly active user base continued to expand. GMV (Gross Merchandise Value) of the live broadcasting sales...

Ming Lu

KS (1024 HK) 4Q23 Earnings Preview: Will See Historical Profit

We believe total revenue will increase by 17% YoY in 4Q23 and 15% in 2024. KS will see historical high operating profit. We conclude that KS has an...

Ming Lu

[Kuaishou (1024 HK, BUY, TP HK$79) TP Change]: Robust Organic Traffic Supports Robust Growth

Kuaishou's revenue and profits are expected to meet expectations, thanks to improved margins. The company's playlet and e-commerce businesses are...

Blue Lotus Research Institute

[Kuaishou (1024 HK, BUY, TP HK$81) TP Change]: Prime Beneficiary of Playlet Induced Traffic

​Kuaishou beats revenue and profit estimates in Q4 due to organic traffic growth and reduced marketing costs, leading to a raised price target of...

Blue Lotus Research Institute

Kuaishou (1024 HK) - More Bullish on Margin Improvement

We turn more bullish on Kuaishou’s (KS) margin enhancement ahead, with ads & ecommerce share gains to continue. KS delivered solid 4Q23 results,...

CMB International

KS / Kuaishou (1024 HK): 4Q23, Historical High Operating Profit

Operating profit hit historical high. Monthly active user base continued to expand. GMV (Gross Merchandise Value) of the live broadcasting sales...

Ming Lu

KS (1024 HK) 4Q23 Earnings Preview: Will See Historical Profit

We believe total revenue will increase by 17% YoY in 4Q23 and 15% in 2024. KS will see historical high operating profit. We conclude that KS has an...

Ming Lu

[Kuaishou (1024 HK, BUY, TP HK$79) TP Change]: Robust Organic Traffic Supports Robust Growth

​Kuaishou's revenue and profits are expected to meet expectations, thanks to improved margins. The company's playlet and e-commerce businesses are...

Blue Lotus Research Institute

Kuaishou beats revenue and profit estimates in Q4 due to organic traffic growth and reduced marketing costs, leading to a raised price target of...

Kuaishou's revenue and profits are expected to meet expectations, thanks to improved margins. The company's playlet and e-commerce businesses are...