＜Research＞M Stanley Drops KUAISHOU-W (01024.HK) TP to $50, Lowers Earnings Forecasts

　　Morgan Stanley issued a report, lowering its 2024-2026 EPS forecasts for KUAISHOU-W (01024.HK) -0.750 (-1.738%) Short selling $131.57M; Ratio 17.989% by 3% to 6%, mainly due to a weakening of China's macro-economy which led to decreases in merchandise revenue (GMV) and advertising revenue forecasts. The target price is correspondingly cut from $55 to $50, and the company is rated Equal-weight.

　　The broker expected KUAISHOU's 2Q24 revenue and adjusted net profit to be RMB30.2 billion and RMB4.4 billion respectively, up 9% and 62% YoY, in line with market consensus. For 3Q, the broker lowered its projections for advertising and other revenues to 17% and 16% YoY growth respectively, which are below market forecasts.

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　　Separately, the National Development and Reform Commission (NDRC) announced a new consumer trade-in programme covering 8 types of home appliances, under which each consumer may receive a subsidy of up to 20% of the retail price of a product for one purchase in each sector. The broker estimated that KUAISHOU will be able to generate 10% to 15% of GMV from these segments.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-25 16:25.)

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