GO
| HSI1 | 22,881.02 | -145.66 | 308.05B |
| HSCEI1 | 7,558.30 | -47.04 | 109.39B |
| Back Zoom + Zoom - Block Traded | |
|
2026-06-30 11:19:23 G Sachs published a research report stating that despite recent market news that KUAISHOU-W (01024.HK)'s "Kling AI" may be spun off and seek financing, the company's share price has remained under pressure due to weak overall investment sentiment and capital flows in China's internet sector, as well as cautious views on 2Q advertising and e-commerce growth trends. To reflect slowing consumption trends and the impact of tax-related issues, the broker lowered its 2026 earnings forecast for KUAISHOU-W by 6% to 7% below guidance and slightly adjusted its advertising forecasts. The broker noted that KUAISHOU-W's current share price level is equivalent to 10x the group's projected 2026 P/E ratio, implying that the P/E ratio for its core platform business is only 6x, suggesting flat or declining growth. Meanwhile, the market valuation for Kling AI exceeds USD8 billion, based on projected annual recurring revenue (ARR) of USD1 billion by the end of 2026, equivalent to only 8x price-to-sales ratio. The broker expected progress in Kling AI's first-round financing, model upgrades and ARR updates to drive a shift in market valuation narratives and prompt investors to reassess KUAISHOU-W's potential value using a sum-of-the-parts (SOTP) framework. G Sachs slightly lowered its revenue forecasts for KUAISHOU-W from 2026 to 2028 by about 1% to reflect softer advertising and e-commerce businesses amid macroeconomic challenges. Taking into account elevated AI investment and R&D expenses, the broker also cut net profit forecasts for the same period by 2% to 3%. Based on an unchanged 15x average projected 2026-2027 P/E ratio, the broker lowered KUAISHOU-W's 12-month TP from HKD70 to HKD68 and reiterated its "Buy" rating. (ad/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese 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. | |