Jinwu Financial News | Tianfeng released a research report stating that Kuaishou (01024) announced its Q3 2024 results. The company achieved revenue of 31.1 billion yuan in Q3 2024, an 11.4% year-on-year increase; the adjusted net income was 3.9 billion yuan, up 24.4% year-on-year, with a gross profit of 16.9 billion yuan, a 17% year-on-year increase. Sales and marketing expenses grew by 15.9% year-on-year to 10.4 billion yuan, accounting for 33.3% of total revenue, mainly due to increased promotional spending. R&D expenses increased by 4.5% year-on-year to 3.1 billion yuan, accounting for 10% of total revenue, with growth primarily due to increased employee benefits. Administrative expenses decreased by 11.4% year-on-year. The firm believes that the company's core business revenue growth is steady and advises continued attention to the company's profit margin changes.

The firm stated that GMV is influenced by seasonal factors, and the general shelf GMV is expected to increase steadily in Q3 2024. The company's other service revenue increased by 17.5% year-on-year to 4.2 billion yuan, while Kuaishou's e-commerce GMV rose by 15.1% year-on-year to 334.2 billion yuan. On the supply side, the number of active merchants in Kuaishou's e-commerce averaged monthly increased by over 40% year-on-year in Q3 2024, with the number of new merchants joining Kuaishou increasing by over 30% year-on-year, mainly benefiting from the company's ongoing promotion of new merchant strategies such as the "Doujin Plan," "Qihang Plan," and "Fuyou Plan"; on the demand side, the number of monthly active buyers in Kuaishou's e-commerce grew by 12.2% year-on-year to 0.133 billion, showing improvement compared to the previous quarter, benefiting from the company's diversified marketing approaches designed for new user growth. Looking ahead to Q4, the firm believes that as the company's mall scenarios gradually advance, the share of general shelf GMV will continue to grow beyond the SSE Mega-cap Index (the GMV share was over 27% in Q3 2024), and it is expected that the annual GMV growth rate will reach 18% year-on-year.

The firm continued to point out that in Q3 2024, online marketing services revenue reached 17.6 billion yuan, a 20% year-on-year increase, with the main growth driver being the company's external circulation advertising. From the external circulation perspective, marketing consumption in industries such as media news, platform e-commerce, and local life grew significantly, with UAX consumption in external circulation further increasing to about 50%; from the internal circulation perspective, the number of active merchants in the internal circulation rose by over 50% year-on-year in Q3 2024. Looking forward to Q4, the firm expects the company's external circulation advertising to maintain a strong growth trend, with internal circulation advertising likely to keep pace with GMV growth. Considering the company's external circulation advertising growth exceeding expectations, the firm predicts revenues for 2024-2025 to be 127.1/140.7 billion yuan, respectively; it expects adjusted net income for 2024-2025 to be 17.6/21.6 billion yuan, maintaining a "Buy" rating.