BUZZ-China's Kuaishou rises most in 3 weeks on Q1 beat, share buyback plans

Reuters05-23

** Shares of Kuaishou Technology rise 4.2% to HK$60.60, post their biggest intraday pct rise since May 3

** Stock of the Chinese content community and social platform operator hits its highest level since May 1, and extends gain for a second session

** Stock is biggest pct gainer on Hang Seng Tech Index

and Hang Seng China Enterprises Index

** Kuaishou posts Q1 net profit of 4.1 bln yuan ($566.1 mln) versus a loss of 876 mln yuan the same period in 2023, with total revenue up 16.6% Y/Y at 29.4 bln yuan

** Co announces an on-market share repurchase programme of repurchasing up HK$16 bln ($2.1 bln) worth of shares over the next 36 months to demonstrate its confidence in its own business outlook and prospects

** Jefferies maintains "buy" rating and raises price target to HK$83 from HK$78, citing 1Q revenue and non-IFRS earnings beat expectations while share repurchase reflects confidence in outlook

** Hang Seng Tech Index drops 2.1%, Hang Seng China Enterprises Index falls 2% and Hang Seng Index

declines 1.9%

** Kuaishou stock up 11.6% YTD

($1 = 7.2431 Chinese yuan)

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))

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