KGI Morning Briefing-2021.11.09
#Kuaishou (1024): target price: HK$120, stop-loss price: HK$80
HK Stock is expected to range trade today; initial resistance at 25,000 | Kuaishou (1024): target price: HK$120, stop-loss price: HK$80.
Stock Pick
Kuaishou (1024): Double-11 Shopping Festival started earlier this year on October 20, offering more time for livestreaming activities. Livestreaming e-commerce is now the fastest growing segment in e-commerce space in term of GMV, and hence we expect short video platform such as Kuaishou (1024) to outperform traditional e-commerce platforms in term of GMV growth. Kuaishou has been undergoing organizational restructure, forming four major business units and consolidating overseas product lines. We see user growth to accelerate in 3Q21, and advertising revenue growth to ramp up in the next few quarters, boding well for valuation re-rating. We set a target price at HK$120, with a stop-loss price at HK$80.