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

Equity Bottom-Up

<ul>
<li>Kuaishou reported C4Q24 revenue, IFRS operating profit, and IFRS net income slightly below our estimates and consensus. Margin outperformed.</li>
<li>Advertising and e-commerce revenue growth temporarily slowed from due to Kuaishou’s offering traffic subsidies to the internal merchants, reducing incentive to advertise, but will translate to revenues later;</li>
<li>We cut TP from HK$72 to HK$70 to reflect lowered margin outlook due to AI-related capex and R&amp;D expenses</li>
</ul>


Kuaishou reported C4Q24 revenue, IFRS operating profit, and IFRS net income slightly below our estimates and consensus. Margin outperformed.
Advertising and e-commerce revenue growth temporarily slowed from due to Kuaishou’s offering traffic subsidies to the internal merchants, reducing incentive to advertise, but will translate to revenues later;
We cut TP from HK$72 to HK$70 to reflect lowered margin outlook due to AI-related capex and R&amp;D expenses


[Kuaishou (1024 HK, BUY, TP HK$70) TP Change]: C4Q24 Review: Temporary Setback a Chance to Buy

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.

<ul><li>Kuaishou announced 4Q24 results: total revenue was up by 9% YoY to RMB35.4bn, and adjusted net profit grew by 8% YoY to RMB4.7bn, both in line with our/consensus estimates.</li><li>FY24 total revenue/adjusted net income increased by 12/72% YoY respectively.</li><li>For FY25E, we forecast total revenue to grow by 12% YoY with a largely stable adjusted net margin, as the favourable revenue mix shift and efficiency gains will be largely offset by the increase in AIrelated investment.</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 announced 4Q24 results: total revenue was up by 9% YoY to RMB35.4bn, and adjusted net profit grew by 8% YoY to RMB4.7bn, both in line with our/consensus estimates.FY24 total revenue/adjusted net income increased by 12/72% YoY respectively.For FY25E, we forecast total revenue to grow by 12% YoY with a largely stable adjusted net margin, as the favourable revenue mix shift and efficiency gains will be largely offset by the increase in AIrelated investment.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) - Accelerating AI Development to Drive Long-Term Growth

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>Kuaishou (KS)’ operating margin improved to 10% in 2024 versus 4% in 2023.</li>
<li>Online marketing revenue increased by 20% and GMV increased by 17% in 2024.</li>
<li>We conclude an upside of 104% for the next twelve months.</li>
</ul>


Kuaishou (KS)’ operating margin improved to 10% in 2024 versus 4% in 2023.
Online marketing revenue increased by 20% and GMV increased by 17% in 2024.
We conclude an upside of 104% for the next twelve months.


Kuaishou (1024 HK): FY2024 Result, Op Margin to 10% from 4%, Price to Be Double

Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kuaishou-technology" target="_blank" data-smartkarma-citation="entities:29725:1" rel="noopener">Kuaishou Technology (1024 HK)</a> is set to report its latest financial results tomorrow, Tuesday 25 March, after market close.</li>
<li>
Expected Price Movement: Historical median price movement post-earnings is 5.6%, with option implied movement at 5.9%, indicating consistent expectations.</li>
<li>
Options Strategies: Discussion of option strategies and trading opportunities, or the lack thereof, based on the narrow margin of the March 28 straddle pricing.</li>
</ul>



Kuaishou Technology (1024 HK) is set to report its latest financial results tomorrow, Tuesday 25 March, after market close.

Expected Price Movement: Historical median price movement post-earnings is 5.6%, with option implied movement at 5.9%, indicating consistent expectations.

Options Strategies: Discussion of option strategies and trading opportunities, or the lack thereof, based on the narrow margin of the March 28 straddle pricing.


Kuaishou Technology (1024 HK) Earnings Tomorrow: Anticipated Price Movements

Equity Derivatives and Volatility Specialist, Clifton Derivatives

John Ley

Equity Derivatives and Volatility Specialist

Clifton Derivatives

Independent derivative and volatility research firm focusing on events/catalysts, earnings, relative value and cross asset volatility strategies.

<ul>
<li>A detailed analysis of the earnings implied jump in Kuaishou options compared to historical outcomes.</li>
<li>Pre- and post-earnings price movements are examined to assess directional tendencies and magnitude.</li>
<li>We find that returns heading into and after earnings have shown a strong bias.</li>
</ul>


A detailed analysis of the earnings implied jump in Kuaishou options compared to historical outcomes.
Pre- and post-earnings price movements are examined to assess directional tendencies and magnitude.
We find that returns heading into and after earnings have shown a strong bias.


Kuaishou Earnings: Options Market Expectations and Post-Earnings Trends

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, BUY, TP HK$70) TP Change]: C4Q24 Review: Temporary Setback a Chance to Buy

Kuaishou's revenue and profit slightly below estimates, margin outperformed. Slowdown in advertising and e-commerce revenue growth due to traffic...

Blue Lotus Research Institute

Kuaishou (1024 HK) - Accelerating AI Development to Drive Long-Term Growth

Kuaishou announced 4Q24 results: total revenue was up by 9% YoY to RMB35.4bn, and adjusted net profit grew by 8% YoY to RMB4.7bn, both in line with...

CMB International

Kuaishou (1024 HK): FY2024 Result, Op Margin to 10% from 4%, Price to Be Double

The operating margin improved to 10% in 2024 versus 4% in 2023. Online marketing revenue increased by 20% and GMV increased by 17% in 2024. We...

Ming Lu