Recent market discussions about the potential spin-off of Kling by KUAISHOU-W (01024.HK) -1.000 (-1.901%) Short selling $533.88M; Ratio 15.016% have shored its share price up by about 20% between May 5 and 8, Haitong International said in its report. The broker estimated the likelihood of a future spin-off is relatively high.The broker cited four reasons: Kling may be undervalued amid slowing growth in KUAISHOU's core business; a spin-off could broaden Kling's financing channels and ease KUAISHOU's own AI capex burden, especially as peers ramp up AI investment; reduced capex pressure would support a valuation recovery of KUAISHOU's traditional businesses; and the spin-off would help retain top talent.Related News CLSA: KUAISHOU-W (01024.HK) Kling AI Annualized Revenue Exceeds USD300M, Poised to Become One of Global Top 3 Generative Video ModelsUnder the assumption of a ring-fence listing, Haitong International expected KUAISHOU's share price could reach HKD84. If the spin-off listing is implemented this year, Haitong International estimated KUAISHOU's overall valuation would whop HKD368.6 billion. Risk factors include macro weakness, acute competition, regulatory risks facing short-video platforms, and potential delays or rejection of Kling's spin-off listing plan. (HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-13 16:25.)
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