CLSA has released a research report indicating that Kuaishou-W's (01024) Kling AI is expected to deliver another positive surprise in the first quarter. The current valuation of Kuaishou is attractive, with a projected adjusted price-to-earnings ratio for 2027 of only 11.5 times. The firm maintains an Outperform rating with a target price of HK$68. The report notes that Kling AI's annualized revenue is estimated to have surpassed $3 billion. Continuous technological upgrades are anticipated to accelerate its commercial adoption and penetrate high-value video production sectors. CLSA believes Kling AI has the potential to become one of the top three generative video models globally and secure a significant position in the $300 billion global content creation market.
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