With the stock price rising by 14% over 6 trading days, KUAISHOU is ushering in a moment of revaluation of its value

After the investor day event in 2024, KUAISHOU (01024), which released strong value signals to investors, has started a strong upward trend.

According to the Securities Times app, since the end of KUAISHOU's 2024 investor day event on September 16, the stock price has risen from HKD 38.15 to HKD 43.5 at the close on September 24, with an increase of 14% during this period.

In just six trading days, KUAISHOU's market value has increased by approximately HKD 23.2 billion, with the main reason being that the clear and strong value signals released by the company's management during the investor day event were recognized by the market, leading to active buying from various investors.

It is understood that during the event, KUAISHOU's founder, chairman, and CEO, Cheng Yixiao, along with the company's executive team, made a collective appearance to introduce the latest business developments and strategic goals to global investors and analysts both on-site and online. Cheng Yixiao expressed confidence that KUAISHOU will achieve a goal of surpassing 400 million DAUs (daily active users) in the second half of the year. Data shows that in the second quarter of this year, KUAISHOU's DAU figure had already reached 395 million.

The executives present at the event introduced that to further promote the prosperity of the business ecosystem, KUAISHOU will continue to balance content and commercialization to drive user growth, retention, and revenue synergies. Additionally, based on diverse business scenarios, KUAISHOU will continue to focus on advanced technology and AI models to reshape the platform ecosystem. Furthermore, as a digital platform with a global perspective, KUAISHOU will continue to advance towards internationalization and achieve high-quality platform development through the deep layout of diversified businesses.

After receiving the positive signals from KUAISHOU's management, the capital market also responded positively. For example, frontline investment institutions attending the event were vocal in their bullish stance, with internationally renowned investment banks J.P. Morgan and Goldman Sachs directly setting target prices of HKD 70 and HKD 67 respectively after the event. These target prices represent a potential upside of 60.9% and 54% from the current price, indicating that KUAISHOU's investment value has been widely recognized by international authoritative investment institutions.

J.P. Morgan, considered a smart money indicator, believes that KUAISHOU still has unlimited potential in diversified monetization models and overseas markets. Based on the company's short-term goal of achieving core business revenue and adjusted net profit margins exceeding 20% and a long-term goal of gross profit margins reaching 60%, the bank has given KUAISHOU a "buy" rating.

Similarly, another international bank, Goldman Sachs, believes that under KUAISHOU's artificial intelligence strategy, the company has significant advantages in areas such as content recommendation, content understanding, and content generation. Additionally, the decrease in server and bandwidth costs will help KUAISHOU achieve its medium to long-term goal of increasing gross profit margins to above 60%.

Chinese brokerage firms with domestic backgrounds also have a positive outlook on KUAISHOU's future. CICC believes that KUAISHOU's core business is expected to continue driving revenue growth, while initiatives such as AI empowerment and operational efficiency are expected to enhance the company's profit release capabilities. Based on this, CICC has given KUAISHOU an "outperform the market" rating, with a corresponding target price of HKD 56.

Addressing concerns in the market, analysts from Soochow Securities believe that whether viewed on a year-on-year or quarter-on-quarter basis, KUAISHOU's user stickiness has continued to grow over the past period, indicating that the company has not stagnated in growth despite changes in the competitive landscape At the same time, as KUAISHOU's profit margin continues to improve, the current company valuation has a high margin of safety. Therefore, the bank maintains a "buy" rating on KUAISHOU.

Domestic and foreign investment institutions are unanimously bullish on KUAISHOU, which may explain why KUAISHOU has seen consecutive large increases in the past few trading days, showing signs of a significant reversal in stock price.

Furthermore, it is worth mentioning that in addition to internal factors, external positive factors are also rapidly accumulating for KUAISHOU, which may inject new momentum into the company's future stock price uptrend. The overseas team of TF Securities believes that compared to overseas markets, Chinese assets currently offer a higher cost-performance ratio, especially based on the expectation of gradual recovery and anticipation of improving fundamentals. Hong Kong stocks and Chinese concept stocks are attractive in terms of valuation, with a high risk-return ratio.

In conclusion, with the Federal Reserve officially entering an interest rate reduction cycle, KUAISHOU, favored by many top investment institutions, may attract more attention from international capital. At this point in time, with sufficient internal growth momentum and attractive valuation, KUAISHOU is undoubtedly worthy of investors' attention