Citigroup: Maintain Buy rating on Kuaishou, Still optimistic about the stable performance of core business.

Citi released a research report pointing out that recently they have had discussions with senior management including Kuaishou's CFO Jin Bing, discussing topics such as the rapid development of AI technology, the integration of AI technology with business operations, the latest trends and outlook of e-commerce business, the competitive landscape in the domestic market, and shareholder returns. Citi continues to be optimistic about Kuaishou's core business performance, leading position in video generation models, and attractive valuation, maintaining a "buy" rating. Management revealed that the daily average consumer spending on AI-related features has reached 300 million RMB, the performance of e-commerce business during the 618 promotion period met expectations, and competition has improved since the beginning of the year. The primary focus in the future will be to strengthen live streaming e-commerce, optimize shelf e-commerce, and increase commission rates. Citi gives Kuaishou a target price of 66 HKD, corresponding to about 13 times the adjusted earnings forecast per share in 2025.