Glonghui, May 27 | Goldman Sachs reports that Kuaishou's first-quarter revenue was in line with expectations, but non-IFRS net profit was 33% and 39% higher than the bank's and market expectations. The bank believes that Kuaishou's performance reflects the company's high-quality revenue stream (excluding live streaming). The advertising revenue (eCPM) obtained through each thousand impressions has improved with the upgrading of advertising technology, and continues to increase by 20% year over year. The results also reflect changes in revenue mix and expansion in profit margins due to operating expenditure discipline, as well as promises of shareholder returns. The bank believes that after the company's profit forecast was raised by 50% last year, the market will raise this year's profit forecast. The bank expects the company's net profit this year and next two years to be 18 billion yuan and 25 billion yuan respectively. Although the stock has risen 30% since the middle of last month, the current stock price is only 13 times the predicted price-earnings ratio. Compared with the earnings per share growth forecast for this year and next two years, it is 75% and 37%, respectively. The bank raised Kuaishou's target price from HK$75 to HK$80, maintaining a “buy” rating while remaining on the “confident buy list”.