Jefferies Keeps Buy Rating on Kuaishou-W with HK$63 Target Price

Jefferies has released a research report maintaining its "Buy" rating and HK$63 target price for Kuaishou-W (01024).

The firm noted that Kuaishou has launched its next-generation Kling AI model, Kling 4.0, a version the market has long anticipated. Jefferies views the release as a positive development that benefits Kling's annual recurring revenue (ARR).

According to the report, Kling 4.0's key improvements over previous versions include: video duration of up to 30 seconds, surpassing Kling 3.0's 15 seconds and Flash's 20 seconds; support for up to 10 keyframe image inputs, enabling camera movements that better align with user needs, compared to Kling 3.0's 2 frames and Flash's 1 frame; resolution and image quality upgraded to 10-bit HDR, 1080p, 4K and 21:9, outperforming Kling 3.0's 8-bit SDR and Flash's 720p; and an input token limit increased to 8,000, allowing users to provide more detailed scripts and scene descriptions, up from Kling 3.0's approximately 2,500 characters.

In addition, the new version supports dual-channel stereo and features an upgraded interface, with the API set to be rolled out to enterprise clients soon. Jefferies reiterated that following Kuaishou's financing and restructuring of Kling in July 2026, Kling's post-investment valuation stands at approximately US$18 billion.

The financing better reflects Kling's value, allowing investors to independently assess Kling's performance and potential rather than evaluating it alongside Kuaishou. It also attracts investors focused on the development and application of AI video generation technology, enhances Kling's image among customers, suppliers and potential strategic partners, facilitates efficient allocation of financial resources, and promotes direct alignment of management responsibility and accountability.