[ET Net News Agency, 17 March 2021] Jefferies Research initiated coverage on Kuaishou
Technology (01024) with a "buy" rating and a target price of HK$395.
The research house said Kuaishou is a well-known short video brand centered on its
highly engaging social content ecosystem. It is at a sweet spot in content consumption
evolution with a focus on user experience.
Jefferies believes its huge and growing user base, increasing time spent and fast growth
of high margin ad and e-commerce segments mark it out from peers. It is well-positioned to
embrace opportunities ahead arising from overall sector developments.
Jefferies estimated online ad per DAU (daily active users) is low relative to peers and
expects an online ad to grow at 69% CAGR between 2020 to 2023. (KL)