HK-listed Kuaishou sinks to three-week low on lacklustre outlook

Kuaishou Technology

21/11/2024 03:16

** Shares of China's Kuaishou Technology  1024.HK  down
12.8% to HK$45.80, their lowest levels since Oct 31, as brokers
grow more cautious about future profit growth    
    ** Stock set for its biggest one-day decline since Oct 8,
leading losses in the Hang Seng Tech Index, which slips 0.5% 
    ** The Chinese content community and social media platform
operator said its Q3 revenue increased 11.4% Y/Y, non-IFRS
adjusted net profit jumped 24.4% Y/Y and adjusted EBITDA rose
12% Y/Y 
    ** Nomura maintains a "neutral" rating on Kuaishou, noting
the company's largely in-line Q3 results amid a slowing
e-commerce business. While 4Q revenue outlook is in line, ad
revenue slightly misses market expectations
    ** Citi maintains a "buy" rating on Kuaishou, noting in-line
3Q24 results with e-commerce and ad momentum on track for 4Q24E.
While e-commerce growth may slow, non-ecommerce growth is
expected to remain decent 
    ** Jefferies keeps "buy" rating saying growth in 4Q is on
track with consensus estimates
    ** Hang Seng Commerce & Industry Index  .HSNC  slips 0.2%,
and Hang Seng Index  .HSI  eases 0.3%
    ** Stock down 10.9% YTD  

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))