Market Insight | Kuaishou-W Surges Over 4% in Afternoon Trading, Expected to Release First Quarter Results Today, E-commerce May Drive Profits Higher Than Expected

Kuaishou-W rose more than 4% in the afternoon, up 4.22% to HKD 59.3 with a turnover of HKD 9.52 billion as of the time of publication. On the news front, Kuaishou is set to release its first-quarter performance today. China Everbright Securities pointed out that it is expected that in Q1 2024, Kuaishou will achieve a total revenue of RMB 28.94 billion (yoy +14.8%), adjusted net profit of RMB 3.44 billion, and adjusted net profit margin of 11.9% (yoy +11.7pcts). Live streaming e-commerce still has dividends, and under its promotion, it is expected that domestic circulation advertising and e-commerce business will maintain rapid growth in Q1 2024. The company has entered a period of profit release, with continuous improvement in user acquisition and retention efficiency, continuous optimization of personnel efficiency, and expected improvement in adjusted net profit margin in subsequent quarters under the optimization of platform governance, organizational structure, and investment strategy. In addition, Kuaishou e-commerce recently kicked off the 618 shopping festival, canceling pre-sales and directly selling goods in stock, while announcing incentive policies such as a 1 billion yuan subsidy. Industry insiders analyze that this major promotion, represented by JD, Taobao, and Kuaishou, which cancel pre-sales and shorten the consumption chain, is expected to boost user consumption enthusiasm and thereby drive the performance of e-commerce business