New Street Research - Kuaishou Technology Class B (01024) Kuaishou 2Q24 Results: Further Deceleration in E-commerce for 2H

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New Street Research

Jin Yoon

Kuaishou 2Q24 Results: Further Deceleration in E-commerce for 2H

What’s new: Kuaishou’s reported 2Q24 results that top consensus and our expectations partly driven by live streaming segment. OMS could remain resilient amid continued recovery in external ads, while e-commerce could further decelerate in the 2H amid a challenging consumption environment. We lower our PT from HKD95 to HKD70 to reflect the slower-than-expected e-commerce outlook. Our updated PT of HKD70 implies 1.7x FY25E EV/Revs. We maintain our BUY rating.

Analysts:
Jin Yoon

21/08/2024 1 EN

Underlying

Kuaishou Technology Class B

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KYG532631028 Hong Kong Stock Exchange Cayman Islands

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New Street Research

Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.

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Pan European Telecom Services and Cable

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Analysts

Jin Yoon

Other Reports on these Companies

New Street Research

Kuaishou 3Q24 Results: Near-Term Traffic Support Could Impact OMS

What’s new: Kuaishou’s reported 3Q24 revs that were largely in-line with consensus and our expectations. OMS could decelerate in 4Q partly due to impact on closed-loop ads as Kuaishou continue to provide merchant traffic support during the major promotion event. Kuaishou would also continue to invest in subsidies related to short plays, e-commerce and local services in 4Q. We lower our PT from HKD70 to HKD60 on lowered outlook. Our updated PT of HKD60 implies 11.8x FY25E P/E. We maintain our BUY rating. Analysts: Jin Yoon

November 21, 2024 November 21, 2024 1 EN

UOB

Kuaishou Technology (1024 HK): 3Q24: Results in line; lukewarm revenue growth expected in 4Q24.

Kuaishou’s 3Q24 results are in line with expectations. Revenue increased 11% yoy to Rmb31b, within consensus estimate. Gross profit margin improved 3ppt yoy to 54%. Non-IFRS profit for the period grew 24% yoy to Rmb3.9b, in line with the street’s forecast. Management guided a lukewarm 4Q24 revenue growth of 10% with earnings estimated to grow 8% yoy to Rmb4.6b-4.7b, largely in line with consensus estimate. Maintain BUY with a lower target price of HK$67.00.

November 21, 2024 November 21, 2024 1 EN

UOB

Greater China Daily: Thursday, November 21, 2024

KEY HIGHLIGHTS Results Kuaishou Technology (1024 HK/BUY/HK$52.55/Target: HK$67.00) Kuaishou’s 3Q24 results are in line with expectations. Revenue increased 11% yoy to Rmb31b, within consensus estimate. Gross profit margin improved 3ppt yoy to 54%. Non-IFRS profit for the period grew 24% yoy to Rmb3.9b, in line with the street’s forecast. Management guided a lukewarm 4Q24 revenue growth of 10% with earnings estimated to grow 8% yoy to Rmb4.6b-4.7b, largely in line with consensus estimate. Maintain BUY with a lower target price of HK$67.00. TRADERS’ CORNER Shenzhou International Group (2313 ...

November 21, 2024 November 21, 2024 1 EN

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Kuaishou 2Q24 Results: Further Deceleration in E-commerce for 2H

Kuaishou 3Q24 Results: Near-Term Traffic Support Could Impact OMS

Kuaishou Technology (1024 HK): 3Q24: Results in line; lukewarm revenue growth expected in 4Q24.

Greater China Daily: Thursday, November 21, 2024

SATS: DBS merger breaks

3Q24 Broadband Trends: FWA capacity limits; FWA demand limits

Gen AI Big Idea Series - Chipletz CEO Bryan Black - Smart Substrate & the Multi-Chip-Module revolution

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