Jingwu Financial News | GTJA research indicates that in Q3 2024, Kuaishou (01024) achieved revenue of 31.13 billion yuan, a year-on-year increase of 11.4%. Revenue from online Marketing Services, live broadcasts, and Other services increased year-on-year by 20.0%, -3.9%, and 17.5% respectively. Gross margin is 54.3%, a year-on-year increase of 2.6 percentage points. Operating profit is 3.1 billion yuan, with an operating profit margin of 10.0%, a year-on-year increase of 2.1 percentage points. Of this, domestic and overseas profits are 3.51 and -0.15 billion yuan respectively, with overseas losses further narrowing. Adjusted Net income is 3.95 billion yuan, a year-on-year increase of 24.4%. Adjusted net margin is 12.7%, a quarter-on-quarter decrease of 2.4 percentage points.

The report indicates that in Q3 2024, Kuaishou achieved DAU and MAU of 0.408 and 0.714 billion people, year-on-year increases of 5.4% and 4.3%, with a DAU/MAU ratio of 57.1%. Daily active users spent an average of 132.2 minutes per day, a year-on-year increase of 7.3%, with nearly 110 billion daily live broadcasts and Short Video views. E-commerce GMV reached 334.2 billion yuan, a year-on-year increase of 15.1%, with Short Video e-commerce GMV growing at a rate of over 40%, and the share of general shelf e-commerce GMV further increasing to 27%. Monthly active buyers in e-commerce number 0.133 billion, a year-on-year increase of 12.2%, and the average number of active merchants per month increased by 40% year-on-year.

The firm adjusted Kuaishou's FY2024E-FY2026E revenue to 127.2/137.1/144.7 billion yuan (previous values for FY2024E/FY2025E were 127.6/141.7 billion yuan); adjusted Net income estimates are 17.7/20.6/24.5 billion yuan (previous values for FY2024E/FY2025E were 18.5/25.1 billion yuan). Assigning a 12x PE for 2025, the Target Price is set at 61.03 HKD, maintaining a "Shareholding rating."