New Street: Kuaishou - Initiating with BUY Rating at HKD 122; Gains in Ads and Ecommerce as DAUs Ramp Over Time
What’s New: We are initiating on Kuaishou Technology (1024 HK) with a BUY rating at a PT of HKD 122, which implies 3.5x FY22E EV/Rev. Our positive view is based on further opportunity in advertising and in ecommerce driven by 1) increase in DAU to 400mn by 2025; 2) upside in ad pricing and ad inventory as number of brand advertisers grows; and 3) continued share gains in ecommerce particularly on the brand side. Kuaishou could double its GMV market share in the next 4 years to 8.4% of online retail sales market.Analysts:
Jin Yoon
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