CMBC International: Maintains "Buy" rating on KUAISHOU-W (01024) with a target price of HK$92.

China Merchants International released a research report stating that it maintains a "buy" rating on KUAISHOU-W(01024) with a target price of HK$92. The company's current 8 times 2024 fiscal year forecast Non-GAAP P/E ratio is very attractive; advertising and e-commerce businesses continue to maintain revenue growth faster than the industry average, while leveraging effects drive strong profit growth. The report points out that the healthy development of Kuaishou's user ecosystem will drive ecosystem growth through three aspects: increasing activity, improving user retention, and strengthening the synergy between content and commercialization. In the future, the company will continue to strengthen its e-commerce strategy of "good content + good products." In terms of commercialization, the efficiency of internal circulation advertising commercialization continues to improve, while external circulation advertising benefits from incremental demand in industries such as short videos, games, and novels, maintaining resilient growth. On the financial side, thanks to optimization of gross profit margin and sales expense ratio, the company's adjusted net profit margin is expected to increase to over 20% in the future.