Report summary
The company achieved an operating revenue of 24.4 billion yuan (YoY + 35.0%), significantly higher than the market expectation of 23.1 billion yuan (YoY + 27.7%). The net profit margin (non IFRS) improved significantly from – 22.5% in Q3 to – 14.6% month on month. The absolute value of non IFRS reached – 3.6 billion yuan, with a loss of 1 billion yuan month on month.
Live broadcast business: the Kwai Chung service revenue growth rate is the first time to return to the year, far exceeding expectations, mainly due to the rapid increase of live ARPPU monthly, and the fast broadcast ARPPU is the lowest in the whole industry. There will be further promotion of space advertising business in the future. The growth rate of online marketing service revenue is beyond the guidelines and beyond expectations, mainly due to the high speed growth of traffic terminals and advertisers.
Electricity supplier business: GMV of electricity supplier reached 240 billion yuan (2021 full year to 680 billion yuan), slightly faster than the guidelines and expectations, monetization rate decreased slightly (commission income QoQ+27.3%VS GMV Kwai GMV QoQ+36.7%, resulting in a slight Commission of liquidation rate of less than 1%), mainly because of brand cold start and large-scale introduction of service providers, in the long run, the fast business ecosystem is good.
Overall, we think Kwai 21Q4’s performance is brilliant, whether it is to examine user growth, user time, or narrowing the release, controlling losses, or the growth of advertising and e-commerce.
This week, the commerce and retail sector closed at 373517 points, down 0.49%, outperforming Shanghai and Shenzhen 300 (down – 1.06% this week) by 0.57 percentage points. The sector ranked 10th among 29 primary industries. Among the segments, general retail fell 0.05%, trade fell 0.09%, franchise chains fell 0.15%, e-commerce and services fell 3.59%, and franchise market operations fell 0.70%. The companies with the top five stock gains are ST Hongtu (12.64%), Fujian Dongbai (Group) Co.Ltd(600693) (10.86%), St Tianshou (10.72%), Sanjiang Shopping Club Co.Ltd(601116) (9.22%), Rainbow Digital Commercial Co.Ltd(002419) (8.81%); The companies with the top five declines in individual stocks are Fujian Sanmu Group Co.Ltd(000632) (- 11.00%), Hangzhou Onechance Tech Corp(300792) (- 9.11%), Wangfujing Group Co.Ltd(600859) (- 8.52%), Beijing Zhidemai Technology Co.Ltd(300785) (- 8.37%), Guangdong Highsun Group Co.Ltd(000861) (- 7.08%).
Important industry news of the week
[commercial retail] Shein is considering a new round of financing with a valuation of about $100 billion
[Internet] Huawei enters the field of mobile payment
