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Kuaishou Technology Class B (HK:1024)
:1024
RESEARCH TOOLSreports
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Kuaishou Technology Class B
(1024)
78Outperform
Positive Factors
Financial Performance
Adjusted net profit grew by 74% YoY to RMB4.7bn, 8% ahead of consensus estimate thanks to better-than-expected cost optimization and opex control.
Online Marketing Revenue
Online marketing revenue grew by 22% YoY to RMB17.5bn in 2Q24, driven by solid growth of both external and enclosed loop marketing services.
Technology and Operations
Kuaishou's proactive upgrade in technology and operations will help to cushion the impact of a challenging macro backdrop and intense competition.
Negative Factors
Domestic Consumption
Kuaishou sees pressure on domestic consumption, as the average order value dropped 23% yoy to Rmb30 as of June.
E-commerce Business Headwinds
Headwinds in e-commerce business to sustain and GMV to grow by 15% YoY in 3Q24E, mainly due to soft consumption and Kuaishou’s relatively conservative subsidy strategy.
E-commerce Growth
E-commerce GMV growth (+15% YoY) in 2Q24 was slower than consensus expectation amid soft consumption sentiment and intense competition.
Kuaishou Technology Class B (1024) vs. S&P 500 (SPY)
Market Cap
HK$215.86B
Dividend YieldN/A
Average Volume (3M)65.36M
Price to Earnings (P/E)13.0
Beta (1Y)1.71
Revenue Growth9.84%
EPS Growth142.28%
CountryHK
Employees26,418
SectorCommunication Services
Sector Strength79
IndustryInternet Content & Information
Share Statistics
EPS (TTM)3.86
Shares Outstanding3,570,921,000
10 Day Avg. Volume62,599,201
30 Day Avg. Volume65,356,415
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)N/A
Price to Sales (P/S)2.11
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$69.79Price Target Upside39.44% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
Kuaishou Technology Class B Business Overview & Revenue Model
Company DescriptionKuaishou Technology Class B (1024) is a leading Chinese technology company that operates one of the world's most popular short video and live streaming social platforms. Headquartered in Beijing, Kuaishou's platform allows users to create, share, and view a wide variety of short-form videos and live streams, fostering a vibrant online community. The company is committed to enhancing user experience through cutting-edge technology and innovative features, serving millions of users globally.
How the Company Makes MoneyKuaishou Technology generates revenue primarily through online marketing services, live streaming, and other value-added services. Online marketing services, including advertising, are a significant source of income, as businesses pay to reach Kuaishou's vast user base. The live streaming segment also contributes substantially to the company's earnings, with users purchasing virtual gifts for their favorite streamers, from which Kuaishou takes a commission. Other revenue streams include e-commerce and online games, facilitated through partnerships and integrations with various service providers and platforms. Kuaishou's diverse monetization strategies and extensive user engagement are key factors driving its financial performance.
Kuaishou Technology Class B Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 120.89B | 113.47B | 94.18B | 81.08B | 58.78B | 39.12B | Gross Profit |
| 65.00B | 57.39B | 42.13B | 34.03B | 23.81B | 14.10B | EBIT |
| 13.71B | 6.43B | -11.15B | -27.48B | -10.50B | 721.53M | EBITDA |
| 15.38B | 14.59B | -5.41B | -71.65B | -112.11B | -17.00B | Net Income Common Stockholders |
| 13.89B | 6.40B | -13.69B | -78.08B | -116.64B | -19.65B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 14.17B | 48.86B | 35.41B | 45.28B | 26.81B | 14.17B | Total Assets |
| 32.41B | 106.30B | 89.31B | 92.52B | 52.15B | 32.41B | Total Debt |
| 4.63B | 15.72B | 12.93B | 13.61B | 5.71B | 4.63B | Net Debt |
| 628.80M | 2.82B | -340.32M | -19.00B | -14.68B | 628.80M | Total Liabilities |
| 88.14B | 57.22B | 49.47B | 47.42B | 212.20B | 88.14B | Stockholders Equity |
| -55.73B | 49.06B | 39.83B | 45.09B | -160.05B | -55.73B |
| Cash Flow | Free Cash Flow | ||||
| 20.60B | 15.88B | -2.42B | -13.28B | -3.62B | 5.47B | Operating Cash Flow |
| 25.98B | 20.78B | 2.20B | -5.52B | 2.29B | 8.02B | Investing Cash Flow |
| -32.57B | -19.86B | -17.55B | -18.36B | -4.87B | -10.15B | Financing Cash Flow |
| 4.83B | -1.36B | -4.48B | 36.50B | 19.29B | 698.05M |
Kuaishou Technology Class B Technical Analysis
Neutral
50.05
Price Trends
55.03
Negative
49.44
Positive
47.60
Positive
Market Momentum
-2.12
Positive
43.54
Neutral
57.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1024, the sentiment is Neutral. The current price of 50.05 is below the 20-day moving average (MA) of 53.33, below the 50-day MA of 55.03, and above the 200-day MA of 47.60, indicating a neutral trend. The MACD of -2.12 indicates Positive momentum. The RSI at 43.54 is Neutral, neither overbought nor oversold. The STOCH value of 57.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1024.
Kuaishou Technology Class B Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | HK$2.10T | 15.88 | 11.98% | 0.89% | 3.92% | 27.80% | |
81 Outperform | HK$1.11T | 46.00 | 13.41% | ― | 32.62% | 33.44% | |
78 Outperform | HK$215.86B | 12.96 | 27.71% | ― | 9.84% | 142.28% | |
77 Outperform | $4.18T | 20.28 | 21.80% | 0.73% | 6.35% | 68.85% | |
74 Outperform | HK$466.16B | 10.06 | 17.58% | 2.28% | 4.83% | 76.96% | |
70 Outperform | $795.96B | 23.10 | 22.07% | ― | 19.90% | ― | |
58 Neutral | $13.15B | 6.73 | -2.46% | 3.87% | 2.36% | -36.74% |
* Communication Services Sector Average
Performance Comparison
HK:1024
Kuaishou Technology Class B
51.80
-1.30
-2.45%
HK:9988
Alibaba Group Holding Ltd.
116.00
45.04
63.47%
HK:9618
JD.com, Inc. Class A
132.40
24.02
22.16%
HK:3690
Meituan Dianping
133.90
20.30
17.87%
HK:1810
Xiaomi
47.45
30.79
184.81%
HK:0700
Tencent Holdings Limited
474.20
132.95
38.96%
Kuaishou Technology Class B Earnings Call Summary
Earnings Call Date: Mar 25, 2025 | % Change Since: -15.03% | Next Earnings Date: May 26, 2025
Earnings Call Sentiment Positive
The earnings call displayed strong growth in revenue, adjusted net profit, and advancements in AI and e-commerce. However, the decline in live streaming revenue and increased expenses pose challenges.Highlights
Strong Revenue Growth
Total revenue for the full year 2024 increased by 11.8% year-over-year to RMB126.9 billion. Q4 revenue grew by 8.7% year-over-year to RMB35.4 billion.
Record Adjusted Net Profit
Adjusted net profit for the full year 2024 increased by 72.5% year-over-year to RMB17.7 billion, with an adjusted net margin of 14%.
AI Technology Advancements
Kling AI launched in June, quickly iterated, and became one of the top two large video models globally, with cumulative revenue exceeding RMB100 million since monetization.
E-commerce and Marketing Growth
E-commerce GMV grew by 14.4% year-over-year in Q4. Online marketing services revenue increased by 13.3% year-over-year in Q4 to RMB20.6 billion.
International Expansion Success
Overseas revenue maintained rapid growth of 52.9% year-over-year in Q4, with online marketing revenue increasing by 83.5% year-over-year.
Lowlights
Live Streaming Revenue Decline
Revenue from the live-streaming business decreased by 5.1% year-over-year for the full year 2024, with Q4 revenue declining by 2% year-over-year.
Increased Expenses Impacting Margins
Selling and marketing expenses increased by 11% year-over-year in Q4, and R&D expenses rose by 4.7% year-over-year, impacting profit margins.
Company Guidance
During the Kuaishou Technology Fourth Quarter and Full Year 2024 Financial Results Conference Call, management provided guidance on several key metrics. For the fourth quarter, average daily active users (DAUs) exceeded 400 million, contributing to a year-over-year revenue growth of 8.7% to RMB35.4 billion. The adjusted net profit for the quarter reached a record high of RMB4.7 billion, with an adjusted net margin of 13.3%. For the full year 2024, total revenue increased by 11.8% year-over-year to RMB126.9 billion, while adjusted net profit surged by 72.5% to RMB17.7 billion, achieving an adjusted net margin of 14%. Online marketing services revenue grew by 13.3% in Q4, reaching RMB20.6 billion, and e-commerce GMV increased by 14.4% year-over-year to RMB462.1 billion. Management highlighted the significant role of AI in driving these results, particularly through the Kling AI platform, which achieved cumulative revenue exceeding RMB100 million since monetization began in Q4. Looking forward, Kuaishou plans to invest further in AI advancements while maintaining a focus on profitability and sustainable growth, anticipating that AI investments will impact adjusted net margins by 1% to 2% in 2025.Kuaishou Technology Class B Corporate Events
Kuaishou Technology Reports Strong Financial Growth for 2024
Mar 25, 2025
Kuaishou Technology announced its audited consolidated results for the year ended December 31, 2024, showing significant financial growth. The company reported an 11.8% increase in revenues to RMB 126,898 million and a 137.7% rise in operating profit to RMB 15,287 million compared to the previous year. These results indicate strong operational performance and improved profitability, which could enhance Kuaishou’s market position and stakeholder confidence.
Kuaishou Technology Forms Nomination Committee to Enhance Board Governance
Mar 25, 2025
Kuaishou Technology has established a nomination committee to identify and recommend candidates for its board of directors. This move aims to enhance board performance evaluation and develop nomination guidelines, ensuring compliance with applicable laws and listing standards. The committee will consist mainly of independent non-executive directors, meeting at least once annually to fulfill its responsibilities.
Kuaishou Technology Schedules Board Meeting to Approve Annual Results
Feb 27, 2025
Kuaishou Technology has announced that its board of directors will meet on March 25, 2025, to consider and approve the consolidated annual results for the year ending December 31, 2024. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.