multivideopoker| Furui: Maintain fast-hand-W buy rating target price raised to HK$83

Furui released a research report sayingmultivideopoker, maintain the "Buy" rating of Fast-Hand-W (01024), and raise its target price from HK$78 to HK$83. The company's total operating income for the first quarter of fiscal year 2024 increased by approximately 16 year-on-yearmultivideopoker.6%, which was 1.3% and 1.4% higher than the market and the bank's expectations respectively. Fast Hand yesterday announced a HK$16 billion share repurchase plan to repurchase Class B ordinary shares worth no more than HK$16 billion in the next 36 months until the end of the annual general meeting to be held in 2027. The bank believes that the relevant repurchase plan reflects the company's confidence in its prospects.

According to the report, a closer look at various data in the performance during the period, the commodity transaction volume (GMV) of its e-commerce business increased by 28.2% year-on-year, slightly lower than the bank's expectation of 28.5%; the operating income of the online marketing business increased by 27.4% year-on-year, higher than the bank's expectation of 26%; the operating income of the live broadcast business was in line with the bank's expectations; other income increased by 47.6% year-on-year, higher than the bank's expectation of 40%; Gross profit margin increased by 8.4 percentage points year-on-year to 54.8%, higher than the bank's forecast of 52.2%; sales and marketing expenses were RMB 9.4 billion; non-IFRS net profit was RMB 4.39 billion, higher than the market and the bank's expectations of RMB 3.2 billion and RMB 3.12 billion respectively; the average number of daily active users increased by 5.2% year-on-year to approximately 394 million, higher than the bank's forecast of 390 million.

Furui expects that Kuaishou's total operating income in the second quarter of this year will increase by approximately 10% year-on-year. As for various market segments, e-commerce GMV is expected to increase by 25% year-on-year; online marketing revenue will increase by 23% year-on-year, mainly benefiting from the solid trend of e-commerce and external advertising revenue momentum; other revenue will increase by 24% year-on-year; gross profit margin increased by 4 percentage points year-on-year to approximately 54%; non-IFRS net profit will be approximately RMB 4.4 billion. For the full year, the bank predicts that Fast Hand's non-IFRS net profit for fiscal year 2024 will reach 17 billion yuan (originally 16 billion yuan).