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

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Kuaishou (1024 HK) – Share gain to continue with earnings upside

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>Kuaishou's 2Q top-line and non-IFRS net income beat cons. by 2%/88%. DAU and MAU increased by 8%/15% YoY. We raised our 2023 EPS estimates to reflect the faster-than-expected margin improvement. </li>
<li>However, we still believe that the growth of WeChat's Video Accounts will become Kuaishou's biggest concern in the future. </li>
<li>Moreover, there is limited room for further profit margin improvement and an increase in the internal e-commerce take rate. We maintain SELL and our HK$ 50 TP.</li>
</ul>


Kuaishou's 2Q top-line and non-IFRS net income beat cons. by 2%/88%. DAU and MAU increased by 8%/15% YoY. We raised our 2023 EPS estimates to reflect the faster-than-expected margin improvement. 
However, we still believe that the growth of WeChat's Video Accounts will become Kuaishou's biggest concern in the future. 
Moreover, there is limited room for further profit margin improvement and an increase in the internal e-commerce take rate. We maintain SELL and our HK$ 50 TP.


[Kuaishou (1024 HK, SELL, TP HK$50) Earnings Review]: Fair Numbers Hide Risks

Kuaishou Technology

[Kuaishou (1024 HK, SELL, TP HK$50) Earnings Review]: Fair Numbers Hide Risks