China Merchants Securities International Initiates Coverage on Kuaishou-W (01024) with Add Rating, Forecasts 12% and 15% Adjusted Net Profit Growth for 2026-27

Stock News10:43

China Merchants Securities International released a research report stating that it has initiated coverage on Kuaishou-W (01024) with an "Add" rating, citing optimistic long-term trends and attractive valuation. The firm set a target price of HK$100, implying a 32% upside potential. The brokerage forecasts that Kuaishou's adjusted net profit will increase by 12% and 15% year-on-year in 2026 and 2027, reaching 23.1 billion and 26.5 billion yuan, respectively. Revenue growth for core businesses, including advertising and e-commerce, is projected at 12% and 9%. The report suggests that if AI-driven commercialization efforts yield further results, Kuaishou's main business could be revalued. The market generally values Kuaishou's AI model, Kling, at a price-to-sales ratio of 20-30 times, which is attractive compared to its Hong Kong-listed peers and leading US AI companies, and Kling possesses substantial revenue scale and rapid growth. The brokerage estimates Kling's revenue will reach 1.05 billion, 1.85 billion, and 2.6 billion yuan for 2025, 2026, and 2027, respectively.

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