Goldman Sachs: Initiates Buy rating on KUAISHOU-W (01024) with a target price of 62 Hong Kong dollars.

Goldman Sachs released a research report stating that KUAISHOU-W (01024) has launched the latest Kling AI 2.0 video generation model (upgraded from the previous 1.6 version), as well as the Kolors 2.0 image generation model. Since the launch of Kling AI, it has accumulated over 22 million users, with a monthly active growth of 25 times, and over 15,000 developers using its API services. Management expects Kling AI revenue to reach $60 million by 2025, with a faster growth rate, and the long-term goal is to occupy a significant share in the total market of the global $10 billion video production industry (including movies, TV shows, shorts, advertisements, etc). At this stage, expanding application scenarios and attracting more professionals to use it are crucial. The target price for the next 12 months is $62 Hong Kong dollars.