KUAISHOU-W (01024) saw its stock rise over 4% during trading, and as of the time of publication, the share price was up 3.37% at HKD 76.60, with a trading volume of HKD 1.372 billion.

Citigroup's report indicated that KUAISHOU is expected to announce its third-quarter results for the year in mid-November. The bank forecasts a year-on-year revenue increase of 13% for the third quarter, reaching RMB 35.2 billion, aligning with market consensus. This growth is attributed to a year-on-year rise in advertising, other revenue, and live-streaming earnings of 12%, 36%, and 5% respectively, benefiting from a 15% year-on-year increase in total gross merchandise volume (GMV). The gross margin is anticipated to be 55%, with adjusted earnings estimated at RMB 4.86 billion, also in line with market expectations. The GMV growth is likely to maintain around a 15% year-on-year increase, supported by the recovery of live commerce and strong momentum in shelf-based e-commerce.

Beyond the core business, Citigroup believes investors will focus on whether management is more optimistic about the revenue outlook for AI capabilities in fiscal year 2025. Regarding the upcoming Double Eleven sales event, Citigroup thinks that KUAISHOU will simplify its discount strategy and provide AI technology support to merchants to drive GMV growth. The firm maintains a "Buy" rating on the stock, deeming the valuation reasonable and keeping the target price at HKD 88.