Huatai Securities: KUAISHOU-W Near-term Earnings Eroded by High Expenses, but User Duration & Stickiness Rise

AAStocks · Sep 7, 2021 03:40

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.

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Huatai Securities: KUAISHOU-W Near-term Earnings Eroded by High Expenses, but User Duration & Stickiness Rise

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