DFZQ Maintains "Buy" Rating on KUAISHOU-W (01024) with Target Price of HK$103.06

Stock News12-05 09:54

DFZQ has released a research report forecasting KUAISHOU-W's (01024) adjusted net profit attributable to shareholders for 2025-2027 at RMB20.4 billion, RMB22.5 billion, and RMB25.9 billion, respectively. The firm maintains its valuation of 18x PE for 2026, corresponding to a fair value of RMB404.8 billion (equivalent to HKD445.4 billion at an exchange rate of 0.909 HKD/CNY), with a target price of HK$103.06 per share, reiterating a "Buy" rating.

KUAISHOU-W recently launched its O1 model, integrating video generation, modification, and expansion into a unified framework to enhance efficiency for professional creators. A breakthrough feature allows modifications to individual elements within video frames, marking a "Nano Banana moment for video." DFZQ expects accelerated adoption on the demand side, driving revenue growth.

Key highlights of the O1 update include: 1. **Unified Multi-Modal Video Model**: Combines tasks like video referencing, content editing, style repainting, and scene extension into a single framework, enabling end-to-end creation. 2. **Deep Semantic Understanding**: Accurately generates video details based on uploaded videos, images, or subjects. 3. **Consistent Video Output**: Ensures stable subject characteristics across multi-angle shots and scene transitions. 4. **Flexible Narration Support**: Offers 3-10 second customizable narratives for both consumer (C-end) social sharing and professional (B-end) creation.

DFZQ notes that the O1 update has no direct competitors in the market, reinforcing KUAISHOU-W's leadership in meeting professional creators' needs while lowering entry barriers for broader user adoption. Specifically: - **B-End Efficiency**: The MVL (Multi-Modal Visual Language) concept enhances flexibility, supporting multi-modal inputs (videos, images, subjects) for streamlined creative workflows. Unlike Nano Banana, which focused on image consistency, O1 tackles video consistency and enables precise element-level editing. - **C-End Accessibility**: Simplified prompts, adjustable durations, and easy replication of trending videos could expand AI video model adoption among casual users.

The report underscores KUAISHOU-W's potential to further penetrate both professional and consumer markets through this innovation.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment