Goldman Sachs released a research report sayingvideopokerslots, maintain the "Buy" rating of Fast-Hand-W (01024) and at the same time remain on the "Confident Buy List", and raise its target price from HK$75 to HK$80.
The report stated that Kuaishou's first-quarter revenue was in line with expectations, but non-IFRS net profit was 33% and 39% higher than the bank and market expectations. It also believes that fast-hand performance reflects its quality revenue stream (excluding streaming live broadcasts). Advertising revenue per thousand displays (eCPM) has improved under the upgrade of advertising technology and continues to deliver a year-on-year growth of 20%. Results also reflect changes in revenue mix and operating expense disciplinesvideopokerslotsProfit expansion and commitment to shareholder returns.
The bank believes that the market will raise its profit forecast for this year after the company's profit forecast was raised by 50% last year. The bank expects the company's net profit this year and next to be 18 billion yuan and 25 billion yuan respectively. Even though the stock has risen 30% since mid-month last year, its current share price is only trading at a forecast P/E ratio of 13 times, compared with forecasts for earnings per share growth of 75% and 37% respectively this year and next.