Citigroup has released a research report indicating that it expects KUAISHOU-W (01024) to announce its first-quarter 2026 results by the end of May. The bank anticipates that the company's revenue and adjusted earnings will largely align with market consensus. Due to the impact of new tax policies in the e-commerce sector during the fourth quarter of 2025, Citigroup maintains its previous forecast, predicting that gross merchandise volume (GMV) growth will slow to high single digits in the first quarter of 2026. The bank remains optimistic about KUAISHOU-W based on the significant potential of its Kling AI, reaffirming a "Buy" rating with a target price of HK$72. Citigroup noted that advertising growth momentum is expected to lag behind GMV performance due to traffic support for merchants and ongoing challenges in the Brazilian market. With increased investment in Kling AI, the bank maintains its view that the group's profit margins will face pressure in both the first quarter and the full year of 2026. Kling AI launched a native 4K video generation feature last Thursday (23rd), and whether this upgrade can boost its revenue may be a key focus for investors.