On May 14, Southbound Capital increased its holdings of Keep (03650) by 836,700 shares, increasing its holdings for 5 consecutive days. As of the close of the day, Hong Kong Stock Connect held a total of 57.366,400 Keep shares, with a shareholding ratio of 10.91%.
In the past 5 trading days, Hong Kong Stock Connect increased its holdings by 9.8 million shares, with a net capital inflow of HK$81.8916 million; in the past 20 trading days, it purchased a total of 21.27 million shares, with a net capital inflow of 167 million yuan.
Recently, Keep released its 2023 annual report, which comprehensively presents the operating status of the past year. According to the annual report, Keep's total revenue was 2.138 billion yuan, and adjusted losses narrowed by 55.7% to 295 million yuan (loss of 667 million yuan in the previous year). According to the Guotai Junan Research Report, Keep's loss stoppage was better than previously anticipated and maintained a “gain” rating.
Currently, Keep's revenue mainly consists of its own brand sports products, online membership and paid content and advertising, and three other segments. Due to the rapid growth of virtual sports events, the total revenue of the online business increased by 11.4% to 996 million yuan, making it the largest source of revenue and effectively increasing gross profit margin.
According to the Debon Securities Research Report, the penetration rate of Keep members has increased from 10% to 10.7%, reflecting that high-quality content and outdoor programs have been partially transformed into a driving force for customer acquisition and traffic monetization; as the largest online fitness platform in China, Keep's advantages in terms of content acquisition and member monetization have gradually become prominent. Currently, the member penetration rate has reached 10.7%. It is expected that with improved high-quality content, outdoor scene expansion, and AI, member retention and conversion are expected to further increase.