HK Stock Market Move | Kuaishou-W(01024) rises over 4% as Citibank points out that the company will provide AI technology assistance to merchants on Double Eleven to drive growth in total sales volume.

KUAISHOU-W (01024) up more than 4%, as of the time of writing, up 4.02%, at 89.2 Hong Kong dollars, with a trading volume of 46.77 billion Hong Kong dollars. Citigroup released a research report stating that KUAISHOU-W may announce its third-quarter performance in mid-November this year, and Citigroup maintains its estimate that revenue and profit are in line with market expectations. The growth in Gross Merchandise Volume (GMV) may maintain an annual growth rate of about 15%, with the recovery of live e-commerce and the strong momentum of shelf-based e-commerce. Other income growth is expected to accelerate due to an increase in commission rates, monetization of e-commerce value-added services, and promotion of Kuaishou's capabilities. In addition to its core business, Citigroup believes investors may be interested in whether management is more optimistic about the revenue outlook for Kuaishou AI2025 in the coming fiscal year. For the upcoming Double 11 discount day, Citigroup believes Kuaishou will simplify its discount strategy and provide AI technology support to merchants to drive growth in GMV. Citigroup predicts that Kuaishou's total revenue for the third quarter will increase by 13% year-on-year to 35.2 billion RMB, in line with market expectations, with advertising, other revenue, and live revenue increasing by 12%, 36%, and 5% respectively, benefiting from the 15% year-on-year growth in GMV. The gross profit margin is estimated to be 55%; the adjusted operating profit margin is expected to be 14%, lower than the 17% in the second quarter of 2025, mainly due to increased market promotion expenses. Therefore, the adjusted profit is expected to be 4.86 billion RMB, in line with market expectations.