Citigroup Highlights KUAISHOU-W (01024) E-commerce Outlook as Key Investor Focus, Maintains "Buy" Rating

Stock News
Mar 26

Citigroup has issued a research report reiterating a "Buy" rating for KUAISHOU-W (01024). The company reported a 11.8% year-on-year increase in total revenue for the fourth quarter, reaching RMB 39.6 billion, which exceeded expectations. Gross profit margin improved to 55.1% from 54.7% in the previous quarter, with an adjusted net profit of RMB 5.46 billion. Gross Merchandise Value (GMV) rose by 12.9% year-on-year to RMB 522 billion, aligning with the bank's forecast. According to the report, investors are expected to focus on the company's e-commerce prospects in light of value-added tax and traffic cost policies. Other areas of attention include revenue expectations for Kling, management's perspective on the competitive landscape of video generation models, the budget for artificial intelligence investments, and commentary on future advertising growth.

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