CMBI issued a Buy rating for KUAISHOU-W due to its total revenue growth of 3% YoY in 1Q26, which met market expectations, and an adjusted net profit that, despite a 26% YoY decline, exceeded forecasts. The strong performance of its Kling AI business, with revenue growth of over 300% YoY, is expected to drive future revenue growth. However, the broker has slightly reduced its earnings forecasts for FY2026-2028 and lowered the target price from HKD80 to HKD70.5.
