Bank of America Securities published a report stating that Kuaishou once again handed over a satisfactory performance, business growth is on the right track, profit growth is strong, and the prospects are promising. The bank believes that Kuaishou's business growth prospects are still optimistic, mainly due to the good momentum of the 618 promotion and the expanding e-commerce shopping scene. The company said that while the ad load was stable in the first quarter, advertising pricing was also improving. At the same time, improving efficiency and controlling operating costs by shifting to a combination of e-commerce and advertising businesses with high profit margins will continue to drive profit growth.
Overall, the bank maintained Kuaishou's forecast of 25% year-on-year increase in product turnover for the second fiscal quarter and the full year. At the same time, the adjusted net profit forecast for the 2024 and 2025 fiscal year was raised by 7% and 2%, respectively. The target price was raised from HK$75 to HK$78, reaffirming the “buy” rating. Due to the steady profit trend, Kuaishou also announced a new share repurchase plan.