Citi: Kuaishou-W(01024) Q1 performance in line with expectations, rated as 'buy'

Citibank released a research report stating that it is expected that Kuaishou-W (01024) will announce its first quarter performance for 2026 at the end of May. The bank expects that the company's revenue and adjusted profit will roughly meet market expectations. Due to the impact of the new tax policies in the e-commerce industry in the fourth quarter of 2025, the bank maintains its earlier forecast, anticipating that the growth of Gross Merchandise Volume (GMV) in the first quarter of 2026 will slow down to high single digits. Citibank believes that, based on the huge potential of Coolin AI, it is still optimistic about Kuaishou; maintaining a "buy" rating with a target price of HK$72. The bank mentioned that due to the support of traffic for merchants and the ongoing drag in the Brazilian market, it is expected that the growth momentum of advertising will be weaker than that of GMV. With the increase in investment in Coolin AI, the bank maintains its forecast that the group's profit margins for the first quarter and full year of 2026 will be under pressure. Coolin launched a native 4K video production function last Thursday (23rd), and whether this upgrade can increase its revenue may be the focus of investors.