Kuaishou rose more than 9% in half a day, leading the Rise in the Internet technology sector of Hong Kong stocks

On January 10, Hong Kong Internet companies collectively strengthened, as of the noon close hang seng technology index rose 1.95%, among the constituent stocks, Kuaishou rose more than 9%, the third consecutive day of rise, contributing the largest individual stocks to the Hang Seng technology index.

Recently, a number of institutions have frequently issued research reports saying that they are optimistic about the future valuation repair space of hong Kong stock technology Internet. Among them, Everbright Securities said that under the background of the stable growth policy, the risk appetite of the Hong Kong stock market is expected to improve, thus opening the "spring restlessness" rhythm of Hong Kong stocks, of which Kuaishou was selected as its January Hong Kong stock gold stock.

After 10 years of development, Kuaishou has moved from the tool stage and the content stage to the ecological stage. Benefiting from the advanced content form of short videos and the ecology of multiple creators, Kuaishou is gradually building a new business ecology in the digital market, with a wide public domain, a stickiness in the private domain, and a closed loop in the business domain. Kuaishou Digital Market connects consumers, content, goods, services, creators, operators and platforms, realizing the closed-loop needs of users who "what they see is what they get" and fully empowering ecological partners.

On December 30, Kuaishou held the year-end summit of e-commerce service ecology. The meeting summarized the phased results of the new strategy proposed by Kuaishou in 2021 and looked forward to 2022. On the basis of the "great trust in e-commerce, branding, and service providers" proposed in July this year, Xiaogu, the head of Kuaishou e-commerce, announced that in 2022, the Kuaishou e-commerce strategy will add a "large-scale industrial belt" to support more industrial belt merchants and emerging brands relying on the industrial belt. The Kuaishou e-commerce trader system and the magnetic Golden Bull platform have also made remarkable achievements in empowering the ecological growth of merchants. In order to provide more accurate assistance, Kuaishou proposed the five-force model of service providers for the first time, and proposed three focus and one infrastructure strategy in terms of business direction.

CITIC Construction Investment Securities said: "Three big engagements" is kuaishou's strategy for entering the era of specialization, systematization and refinement. At present, in terms of trust e-commerce, through the construction of three levels of platform basic trust and community strength, industry solutions, and private domain trust and fan groups, the data such as the repurchase rate of Kuaishou and the coverage rate of new user protection have been greatly improved. In terms of engaging in service providers, Kuaishou has established a three-tier system - quality service providers, core service providers, and strategic service providers, hoping to help the brand and growth more accurately. On this basis, Kuaishou proposed to engage in the industrial chain, aiming to tap good industries, help them upgrade, and provide them to consumers with the help of Kuaishou service providers.

Also in December, Kuaishou announced at the Ecological Open Conference that it has reached an interconnection strategic cooperation with Meituan, and Meituan will launch the Meituan Mini Program on the Kuaishou platform, providing Meituan merchants with complete service capabilities such as commodity display, online transactions and after-sales service, and Kuaishou users will be able to directly access through the Meituan Mini Program.

CICC said: This cooperation is expected to achieve a win-win situation, on the one hand, based on Kuaishou's rich content assets and trust economy, its vast traffic is expected to bring more efficient conversion to Meituan merchants; on the other hand, the supply of content, goods and services of Meituan merchants can enrich the ecology of The Kuaishou platform, meet the diversified needs of users, enhance stickiness and bring more monetization possibilities to Kuaishou.

In the research report, CICC maintained its revenue and earnings forecasts for 2021 and 2022 and continued to maintain its target price of HK$140 for Kuaishou.