External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>During the 618 promotion of 2024, Kuaishou emphasized more on good products at low price, with simpler approach and extended period.</li><li>Pan shelf-based ecommerce performed well, with orders/paying users +65%/57% YoY.</li><li>We estimate its GMV share from pan shelf-based ecommerce to be &gt;25%, and 2Q24E ecommerce growth would be intact (forecasting GMV/other services revenue +25%/24% YoY). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

During the 618 promotion of 2024, Kuaishou emphasized more on good products at low price, with simpler approach and extended period.Pan shelf-based ecommerce performed well, with orders/paying users +65%/57% YoY.We estimate its GMV share from pan shelf-based ecommerce to be &gt;25%, and 2Q24E ecommerce growth would be intact (forecasting GMV/other services revenue +25%/24% YoY). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kuaishou (1024 HK) - Shelf-Based Ecommerce Outperformed in 618

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

<ul>
<li>Kuaishou reported C1Q24 revenue, IFRS OP, and IFRS Net income inline, 58%, and 78% vs. our estimates; and inline, 67% and 86% vs. consensus</li>
<li>Company suggested contribution of Generative AI (GAI) to the growth of the advertising business to be substantial;</li>
<li>We reiterate our BUY rating and raised target price to HK$83, implying 17x PE in 2025.</li>
</ul>


Kuaishou reported C1Q24 revenue, IFRS OP, and IFRS Net income inline, 58%, and 78% vs. our estimates; and inline, 67% and 86% vs. consensus
Company suggested contribution of Generative AI (GAI) to the growth of the advertising business to be substantial;
We reiterate our BUY rating and raised target price to HK$83, implying 17x PE in 2025.


[Kuaishou (1024 HK, BUY, TP HK$83) Target Price Change]: Out-Performance in Off-Season Thanks to GAI

<ul><li>Kuaishou delivered another upbeat quarter, with topline/bottom line +17%/+10,348% YoY (1%/37% above consensus).</li><li>We expect such margin surprise with a HK$16bn new share repurchase program should help its rerating.</li><li>We reiterate our confidence on KS’s resilient growth and earnings upside, and expect a solid 2Q24E ahead. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kuaishou delivered another upbeat quarter, with topline/bottom line +17%/+10,348% YoY (1%/37% above consensus).We expect such margin surprise with a HK$16bn new share repurchase program should help its rerating.We reiterate our confidence on KS’s resilient growth and earnings upside, and expect a solid 2Q24E ahead. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kuaishou (1024 HK) - Bullish on Earnings Upside

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>In 1Q24, revenue grew by 17% YoY and e-commerce GMV grew by 28% YoY.</li>
<li>Both the operating margin and the operating profit reached historical highs in 1Q24.</li>
<li>We set an upside of 47% and the price target at HK$86.00. Buy.</li>
</ul>


In 1Q24, revenue grew by 17% YoY and e-commerce GMV grew by 28% YoY.
Both the operating margin and the operating profit reached historical highs in 1Q24.
We set an upside of 47% and the price target at HK$86.00. Buy.


KS / Kuaishou (1024 HK): 1Q24, Strong GMV and Historical High Op Margin Again

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/asm-pacific-technology-ltd" target="_blank" data-smartkarma-citation="entities:15061:1" rel="noopener">ASM Pacific Technology (522 HK)</a> is expected to replace <a href="https://www.smartkarma.com/entities/ping-an-healthcare-and-technol" target="_blank" data-smartkarma-citation="entities:27008:1" rel="noopener">Ping An Healthcare and Technol (1833 HK)</a> in the <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">Hang Seng TECH Index (HSTECH INDEX)</a> at the September rebalance.</li>
<li>Constituent changes and capping changes will result in a one-way turnover of 3.7% and that will result in a round-trip trade of HK$7.8bn (US$1bn).</li>
<li>Short interest is near the lows on both stocks but there has been a recent tick higher for <a href="https://www.smartkarma.com/entities/asm-pacific-technology-ltd" target="_blank" data-smartkarma-citation="entities:15061:1" rel="noopener">ASM Pacific Technology (522 HK)</a>.</li>
</ul>



ASM Pacific Technology (522 HK) is expected to replace Ping An Healthcare and Technol (1833 HK) in the Hang Seng TECH Index (HSTECH INDEX) at the September rebalance.
Constituent changes and capping changes will result in a one-way turnover of 3.7% and that will result in a round-trip trade of HK$7.8bn (US$1bn).
Short interest is near the lows on both stocks but there has been a recent tick higher for ASM Pacific Technology (522 HK).


HSTECH Index Rebalance Preview: ASM Pacific (522) Could Replace Ping An Health (1833); US$1bn Trade

China

Kuaishou Technology operates as a content community and social platform. The Company helps users create, upload and watch short videos on mobile devices. Kuaishou Technology offers services worldwide.

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Kuaishou Technology (1024 HK)

Kuaishou (1024 HK) - Shelf-Based Ecommerce Outperformed in 618

During the 618 promotion of 2024, Kuaishou emphasized more on good products at low price, with simpler approach and extended period.

CMB International

[Kuaishou (1024 HK, BUY, TP HK$83) Target Price Change]: Out-Performance in Off-Season Thanks to GAI

Kuaishou's strong revenue and income performance, driven by Generative AI, prompts analysts to reiterate BUY rating and raise target price to HK$83.

Blue Lotus Research Institute

Kuaishou (1024 HK) - Bullish on Earnings Upside

We expect such margin surprise with a HK$16bn new share repurchase program should help its rerating. We reiterate our confidence on KS’s resilient...

CMB International

KS / Kuaishou (1024 HK): 1Q24, Strong GMV and Historical High Op Margin Again

In 1Q24, revenue grew by 17% YoY and e-commerce GMV grew by 28% YoY. Both the operating margin and the operating profit reached historical highs in...

Ming Lu

HSTECH Index Rebalance Preview: ASM Pacific (522) Could Replace Ping An Health (1833); US$1bn Trade

ASM Pacific could replace Ping An Healthcare in Sep. Constituent and capping changes will result in a 1-way turnover of 3.7% and in a round-trip...

Brian Freitas

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52-week Range

Market Cap (USDm)

P/E

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Kuaishou (1024 HK) - Shelf-Based Ecommerce Outperformed in 618

During the 618 promotion of 2024, Kuaishou emphasized more on good products at low price, with simpler approach and extended period.

CMB International

[Kuaishou (1024 HK, BUY, TP HK$83) Target Price Change]: Out-Performance in Off-Season Thanks to GAI

​Kuaishou's strong revenue and income performance, driven by Generative AI, prompts analysts to reiterate BUY rating and raise target price to HK$83.

Blue Lotus Research Institute

Kuaishou (1024 HK) - Bullish on Earnings Upside

We expect such margin surprise with a HK$16bn new share repurchase program should help its rerating. We reiterate our confidence on KS’s resilient...

CMB International

KS / Kuaishou (1024 HK): 1Q24, Strong GMV and Historical High Op Margin Again

In 1Q24, revenue grew by 17% YoY and e-commerce GMV grew by 28% YoY. Both the operating margin and the operating profit reached historical highs in...

Ming Lu

HSTECH Index Rebalance Preview: ASM Pacific (522) Could Replace Ping An Health (1833); US$1bn Trade

ASM Pacific could replace Ping An Healthcare in Sep. Constituent and capping changes will result in a 1-way turnover of 3.7% and in a round-trip...

Brian Freitas

Kuaishou's strong revenue and income performance, driven by Generative AI, prompts analysts to reiterate BUY rating and raise target price to HK$83.