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<Research>G Sachs Slightly Cuts KUAISHOU-W (01024.HK) TP to HKD74; Spin-off of Kling AI May Unlock Value
Recommend 25 Positive 44 Negative 20 |
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KUAISHOU-W (01024.HK) is reportedly planning to spin off its video generation model Kling AI, Goldman Sachs said in its report. The broker believed that the ring-fence of Kling AI would diversify financing channels, alleviate pressure on the group's balance sheet and cash flow, better align employee incentive mechanisms and talent retention, and facilitate value unlocking. The broker also provided forecasts for KUAISHOU-W's 1Q26 results, expecting performance to be broadly in line. Although management lowered its FY2026 guidance in March, Kling AI's current ARR outperformed the broker's and market's expectations. If the company can maintain its full-year revenue and profit guidance, it should be sufficient to meet investors' lowered expectations and curb further downside to market earnings forecasts. Goldman Sachs reiterated its Buy rating on KUAISHOU-W, slightly cutting the TP to HKD74 from HKD75, while keeping its average forecast PE for this and next year unchanged at 15x. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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