Ge Long Hui·2025-10-25 06:10Core Viewpoint - Citigroup maintains a "Buy" rating for Kuaishou with a target price of HKD 88, anticipating a 13% year-on-year revenue growth to RMB 35.2 billion for Q3, with adjusted net profit around RMB 4.86 billion, aligning with market expectations [1] Revenue and Profit Forecast - Kuaishou's revenue is projected to grow by 13% year-on-year to RMB 35.2 billion, with adjusted net profit estimated at RMB 4.86 billion, consistent with market forecasts [1] - The company's GMV is expected to achieve approximately 15% year-on-year growth, driven by the recovery of live-streaming e-commerce and strong momentum in shelf e-commerce [1] Advertising and Other Revenue Growth - Domestic advertising business is anticipated to maintain steady growth, while other revenue growth is expected to accelerate due to improved commission monetization rates, commercialization of e-commerce value-added services, and advancements in Kuaishou's AI capabilities [1] Double Eleven Promotion Strategy - For the upcoming Double Eleven shopping festival, Kuaishou plans to simplify discount strategies and empower merchants through AI technology [1] - The platform has committed to investing RMB 18 billion in traffic subsidies during the pre-sale phase, with total traffic subsidies expected to reach several hundred billion [1] - During the official sale phase, Kuaishou will provide RMB 2 billion in user red envelopes and RMB 1 billion in product subsidies to help users, influencers, and merchants capitalize on the Double Eleven benefits [1] AI Development and Market Potential - Investors are advised to pay attention to management's guidance on the revenue outlook for Kuaishou's AI capabilities by 2025 [1] - The recent launches of OpenAI's Sora2 and Google's upgraded Veo may accelerate the market adoption of video generation models, potentially expanding the market development space for Kuaishou's AI [1]