KUAISHOU-W Rises 12% Following BLUEFOCUS (300058.SZ) Resubmission of IPO Application to HKEX

The analyst rating from Shenwan Hongyuan for KUAISHOU-W (01024.HK) is a "Buy" despite lowering the revenue forecast for 2025-27 due to macroeconomic pressures and changes in the live streaming ecosystem. The firm maintained its profit forecast for 2025 and adjusted the net profit estimates for 2026-27, indicating confidence in the company's future performance and potential for growth, particularly in light of the strong performance of KUAISHOU-W's Kling AI, which reflects significant monetization potential.

Goldman Sachs maintained a "Buy" rating on Kuaishou (01024.HK) due to several key factors. The recent launch of "Kling O1," a unified multimodal creation tool, is expected to drive significant growth, particularly as corporate demand for Kling models has surged, now accounting for about 40% of Kuaishou's revenue. The firm anticipates that the ongoing expansion of Kuaishou's overseas business development team and the acquisition of more corporate clients in various sectors will serve as primary growth drivers over the next 1-2 years. Additionally, Goldman Sachs projects substantial revenue growth for the Kling AI business, forecasting over USD140 million in 2025 and an increase to between USD230-240 million by 2026. The potential for upward revisions in revenue forecasts for the Kling AI business in 4Q25 further supports their positive outlook, leading to a target price of HKD83.

The analyst rating for KUAISHOU-W (01024.HK) is maintained as "Buy" by Citi due to several reasons: 1. Technological Innovation: The launch of the latest version of the Kling O1 model, which is described as the "world’s first unified multi-modal video model," is expected to significantly enhance user-generated video flexibility and efficiency. This includes improvements such as extending the maximum video length and integrating diverse instructions into a single input box. 2. Strengthening Competitive Position: Citi notes that Kuaishou is continuing to strengthen its Kling technology to maintain its leading position in the market, despite increasing competition in video generation models. 3. Valuation: The broker highlights Kuaishou's low valuation as a positive factor, suggesting that the stock is undervalued relative to its potential. 4. Target Price: Citi has set a target price of HKD88, indicating confidence in the stock's future performance. Overall, these factors contribute to the positive outlook and the "Buy" rating despite some challenges in the e-commerce sector.

The analyst rating from Nomura for KUAISHOU-W (01024.HK) remains a "Buy" despite lowering the target price from HKD90 to HKD77. The reasons for this rating include: 1. Strong Revenue Growth: KUAISHOU-W's 3Q25 revenue grew by 14% year-over-year, which was 1% above both Nomura's and the market's expectations. 2. Increased Profitability: The company's non-IFRS net profit increased by 26% year-over-year to RMB5 billion, exceeding market expectations by 3%. This was driven by an increase in the operating profit margin to 15%. 3. Advertising and Other Revenue: The growth in advertising revenue was in line with expectations, while a significant 41% increase in other revenue surpassed forecasts, particularly with Kling AI generating over RMB300 million. 4. Market Position: Despite a conservative guidance for 4Q25 revenue growth of 10% (below the market expectation of 12%), the overall performance and growth in other revenue streams support a positive outlook. These factors contribute to Nomura's decision to maintain a "Buy" rating, indicating confidence in the company's long-term potential despite short-term guidance concerns.