Citi launches Investment Report today

The Citi has announced its investment report today, reaffirming the Nyse:yoku "buy" rating, which will set the target price at $35.8 trillion.

The following is a summary of the contents of the report:

Youku potatoes will launch performance-based mobile advertising. As a gathering place for mobile traffic, Youku potatoes have the ability to use their video traffic to promote mobile apps, especially mobile games and online shopping, or to gain revenue based on user clicks, user interaction, or transactional revenue sharing. For example, after clicking on a 15-second commercial advertisement for edible oil, users may visit a Non-staple food website that sells the product. We believe that such ads will accelerate the commercialization of Youku's mobile traffic, because: 1 Youku potatoes need less marketing effort to sell ads to advertisers; 2 The reliance on content is relatively small; 3 can penetrate into the vast user base of lower-level cities.

We believe that it is a positive move for Youku to try out the commercial model of mobile traffic outside of brand advertising. But we also note that competition in the current application distribution market is fierce.

Youku is predicting that performance-based mobile advertising will bring significant revenue to the company starting in the fourth quarter of this year or the first quarter of next year. But in the short term, the percentage of mobile revenue will not exceed 10% of total revenue.

Valuation: We reaffirm the "buy" rating of the Youku potato stock and set the target price at $35.8.