The company used to make a profit but it ramped up its sales and marketing spending in 2019 and went into a loss, this spending should normalise over the next few years and it will be back in the black, competition permitting.

Sumeet Singh

This spending should normalise over the next few years and it will be back in the black, competition permitting, in our view, looking at where domestic and international peers are trading Kuaishou still offers decent upside from the IPO price.