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| HSI1 | 24,830.68 | -505.27 | 186.07B |
| HSCEI1 | 8,382.53 | -200.21 | 81.69B |
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2026-03-26 09:56:58 Citi published a report stating that looking ahead to 2026, the growth momentum of KUAISHOU's (01024.HK) GMV may slow down due to the impact of recent traffic expenditure policies. Additionally, KUAISHOU's traffic support for merchants and the continued lackluster performance in overseas markets may drag down its advertising business performance. With ongoing version updates, the strong momentum of Kuaishou's AI capabilities is expected to be maintained, with revenue projected to reach USD300 million by 2026. However, KUAISHOU plans to increase its capital expenditure from RMB15 billion in 2025 to RMB26 billion in 2026 for AI-related investments, which may significantly drag down its profit margin performance. As a result, the firm has lowered KUAISHOU's profit forecasts for 2026 and 2027 by 27% and 30%, respectively, to reflect the latest revenue growth outlook and substantial AI investments. The target price has also been reduced from HKD95 to HKD72. Although the substantial AI investment may raise concerns among some investors, the firm believes it is a necessary move to defend Kuaishou's market position, and management's profit outlook may be slightly conservative, indicating potential upside. Due to Kuaishou's promising potential, the 'Buy' rating is maintained. (ha/w) AASTOCKS Financial News Website: www.aastocks.com | |