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 C2Q24 revenue, IFRS operating profit, and IFRS net income in-line, in-line, and 5.7% vs.  our estimates; and in-line, 9.0% and 14% vs. the consensus. </li>
<li>The bright spot was strong growth in its advertising and stabilization in the regulation-affected live streaming. Our BUY case of AI empowering mid-sized traffic platforms is intact;</li>
<li>We cut TP to HK$75 to reflect the sustained damage of weak consumption. The stock is trading at only 8.5x PE for 2025.</li>
</ul>


Kuaishou reported C2Q24 revenue, IFRS operating profit, and IFRS net income in-line, in-line, and 5.7% vs.  our estimates; and in-line, 9.0% and 14% vs. the consensus. 
The bright spot was strong growth in its advertising and stabilization in the regulation-affected live streaming. Our BUY case of AI empowering mid-sized traffic platforms is intact;
We cut TP to HK$75 to reflect the sustained damage of weak consumption. The stock is trading at only 8.5x PE for 2025.


[Kuaishou (1024 HK ,BUY, TP HK$75) TP Change]: Temporary Setback from Weak Macro…Reiterate BUY

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>The gross margin improved 5 pp (percentage points) YoY and the operating margin improved 7 pp YoY in 2Q24.</li>
<li>In 2Q24, total revenue grew by 12% YoY, with the main business up by 22% YoY.</li>
<li>Three cross-sectional comparisons reach similar stock upsides about 100%. Buy.</li>
</ul>


The gross margin improved 5 pp (percentage points) YoY and the operating margin improved 7 pp YoY in 2Q24.
In 2Q24, total revenue grew by 12% YoY, with the main business up by 22% YoY.
Three cross-sectional comparisons reach similar stock upsides about 100%. Buy.


KS / Kuaishou (1024 HK): 2Q24, Significant Margin Improvement and 100% Stock Upside

<ul>
<li>We believe revenue will grow by 11% YoY and the company will make money for the fifth consecutive quarter in 2Q24.</li>
<li>We believe both adverting and e-commerce revenue will grow strongly in 2Q24.</li>
<li>We set an upside of 140% and a price target at HK$104 for the end of 2025. Buy.</li>
</ul>


We believe revenue will grow by 11% YoY and the company will make money for the fifth consecutive quarter in 2Q24.
We believe both adverting and e-commerce revenue will grow strongly in 2Q24.
We set an upside of 140% and a price target at HK$104 for the end of 2025. Buy.


KS/Kuaishou (1024 HK): 2Q24 Preview, 2-Digit Growth, 5th Profitable Quarter, and Significant Upside

<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>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

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$75) TP Change]: Temporary Setback from Weak Macro…Reiterate BUY

Kuaishou reports in-line revenue and profit, strong growth in advertising, and stable live streaming despite regulation impact.

Blue Lotus Research Institute

KS / Kuaishou (1024 HK): 2Q24, Significant Margin Improvement and 100% Stock Upside

The gross margin improved 5 pp (percentage points) YoY and the operating margin improved 7 pp YoY in 2Q24. In 2Q24, total revenue grew by 12% YoY,...

Ming Lu

KS/Kuaishou (1024 HK): 2Q24 Preview, 2-Digit Growth, 5th Profitable Quarter, and Significant Upside

We believe revenue will grow by 11% YoY and the company will be profitable for the fifth quarter in 2Q24. We believe both adverting and e-commerce...

Ming Lu

[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

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

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52-week Range

Market Cap (USDm)

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Dividend (Yield)

[Kuaishou (1024 HK ,BUY, TP HK$75) TP Change]: Temporary Setback from Weak Macro…Reiterate BUY

​Kuaishou reports in-line revenue and profit, strong growth in advertising, and stable live streaming despite regulation impact.

Blue Lotus Research Institute

KS / Kuaishou (1024 HK): 2Q24, Significant Margin Improvement and 100% Stock Upside

The gross margin improved 5 pp (percentage points) YoY and the operating margin improved 7 pp YoY in 2Q24. In 2Q24, total revenue grew by 12% YoY,...

Ming Lu

KS/Kuaishou (1024 HK): 2Q24 Preview, 2-Digit Growth, 5th Profitable Quarter, and Significant Upside

We believe revenue will grow by 11% YoY and the company will be profitable for the fifth quarter in 2Q24. We believe both adverting and e-commerce...

Ming Lu

[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

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

Kuaishou reports in-line revenue and profit, strong growth in advertising, and stable live streaming despite regulation impact.

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