Jinwu Financial News | According to a research report from浦银国际, Kuaishou (01024) reported a revenue of RMB 31.1 billion for Q3 2024, representing a year-on-year increase of 11.4%; adjusted net income was RMB 3.95 billion, up 24% year-on-year, with overall performance basically meeting market expectations.

The bank stated that Q3 2024 other revenue was RMB 4.2 billion, an increase of 17.5% year-on-year; the e-commerce GMV was RMB 334.2 billion, showing a year-on-year growth of 15.1% with growth rate stable compared to the previous quarter, mainly benefiting from the number of active buyers increasing by 12.2% year-on-year to 0.133 billion, with average transaction value and purchase frequency largely remaining stable. The average number of active merchants increased by 40% year-on-year, the number of product categories grew by 20% year-on-year, and the broad-shelf e-commerce sse mega-cap index grew, with GMV accounting for 27%. Considering that the trade-in policy mainly benefits the home appliance category, which currently has a relatively low proportion, the impact on boosting e-commerce growth for the platform in the fourth quarter is limited; the bank expects a year-on-year increase in e-commerce GMV of 14% in Q4. The Q3 2024 gross margin was 54.3%, up 1.2 percentage points year-on-year, down 1.0 percentage point quarter-on-quarter, mainly due to increased costs for Olympic-related content, some of which will still be amortized in Q4; the bank expects the gross margin in Q4 to remain stable compared to the previous quarter.

The bank slightly adjusted the company's FY24E/FY25E revenue forecast to RMB 127.2 billion/140.5 billion, and revised the target price to HKD 55, corresponding to a 10x P/E for 2025E. Although e-commerce growth has slowed, it remains relatively better than the industry, and there is still room for improvements in mid-to-long-term profit margins; the current valuation is at a relatively low level, maintaining a "buy" rating.