KUAISHOU-W (01024.HK)'s high expenses on operation expansion, optimization and eco-infrastructure building may weigh on its near-term profitability, reported Huatai Securities. The broker, however, still favors the company, in terms of generating potential value, forecasting KUAISHOU-W to gradually benefit from the Internet effect and monetization improvement. Huatai Securities kept the Buy rating for KUAISHOU-W with its target price sank from HKD215.64 to HKD165.5.
On another note, Huatai Securities highlighted that KUAISHOU-W realized a sharp YoY growth in user numbers over 1H21, with the duration of time users spent on the application and the user stickiness likewise saw certain increases.