Jinwu Financial News | According to CMB International Development Research Report, Kuaishou (01024) announced 3Q24 results: total revenue increased 11% year over year to 31.1 billion yuan, in line with consistent expectations of 31 billion yuan; adjusted net profit increased 24% year over year to 3.95 billion yuan, in line with consistent expectations. The 3Q24 average DAU increased 5% year over year to 0.408 billion, and user stickiness continued to increase, achieving the company's mid-term target of 0.4 billionDau.
Looking ahead to 4Q24E, the bank expects Kuaishou's core business revenue (online marketing and other services) to maintain 16% year-on-year growth, mainly driven by strong growth in external circulation advertising revenue and e-commerce GMV.
As Kuaishou increased investment in key growth areas such as e-commerce, short video, and AI, the bank lowered its FY25-26 profit forecast by 5-8%. The bank lowered its target price from HK$92 to HK$85.6 based on SOTP. Maintain a “buy” rating.
