Core Insights - Kuaishou Technology announced that its AI product, Keling AI, achieved a revenue exceeding $20 million in December 2025, resulting in an annual recurring revenue (ARR) run rate of $240 million [1] - Keling AI previously reported an ARR surpassing $10 million in March 2025, just ten months after its official launch [1] - The company has released the world's first unified multimodal video model, Keling O1, and the Keling 2.6 model, which features "audio-visual synchronization" capabilities, along with new motion control functions, indicating rapid product iteration [1]

Core Insights - Kuaishou Technology announced that its AI product, Keling AI, achieved a revenue of over $20 million in December 2025, corresponding to an annual recurring revenue (ARR) run rate of $240 million [1] - Keling AI previously reported an ARR exceeding $10 million in March 2025, just ten months after its official launch [1] - Since December, Keling AI has released the world's first unified multimodal video model, Keling O1, and the Keling 2.6 model, which features "audio-visual synchronization" capabilities and has launched motion control functions [1]

Core Insights - Kuaishou Technology (01024) announced that its AI product, Keling AI, achieved a monthly revenue exceeding $20 million in December 2025, corresponding to an annual recurring revenue (ARR) run rate of $240 million [1] - Keling AI previously reported an ARR surpassing $10 million in March 2025, just ten months after its official launch [1] Product Development - Since December, Keling AI has released the world's first unified multimodal video model, Keling O1, and the Keling 2.6 model, which features the capability of "audio-visual synchronization" [1] - The company has also introduced new functionalities such as action control, indicating a rapid iteration of its products [1]

Core Insights - Kuaishou Technology announced that its AI product, Keling AI, achieved a monthly revenue of over $20 million in December 2025, corresponding to an annual recurring revenue (ARR) run rate of $240 million [1] - Keling AI reached an ARR of over $100 million just 10 months after its official launch in March 2025 [1] - Since December of the previous year, Keling has released the world's first unified multimodal video model, Keling O1, and the Keling 2.6 model, which features "audio-visual synchronization" capabilities, along with new motion control functions, indicating rapid product iteration [1]

Core Insights - Kuaishou Technology announced that its AI product, Keling AI, achieved a revenue of over $20 million in December 2025, corresponding to an annual recurring revenue (ARR) run rate of $240 million [1] - Keling AI previously reported an ARR exceeding $10 million in March 2025, just 10 months after its official launch [1] - The company has released the world's first unified multimodal video model, Keling O1, and the Keling 2.6 model, which features "audio-visual synchronization" capabilities, along with new motion control functions, indicating rapid product iteration [1]

Core Insights - The launch of the motion control feature in Keling 2.6 has significantly enhanced its product influence, leading to viral content generation on overseas social media platforms [1] - The company anticipates steady growth in its main business, projecting a 9% year-on-year revenue increase to 154.9 billion CNY for 2026, with adjusted profit expected to rise by 10% [2] Group 1: Product Development and Market Impact - Keling 2.6's motion control feature allows users to transfer actions, gestures, and expressions from one video to a new subject, which has gained traction in overseas markets [1] - The app experienced a substantial increase in downloads, particularly in South Korea and India, with daily downloads reaching 59,000 and 257,000 respectively on January 1, compared to previous averages of 425 and 6,022 [1] - The app's daily average revenue has increased by 171% since the feature's launch, with daily active users (DAU) growing by 152% and total downloads increasing by 1,385% [1] Group 2: Financial Projections and Valuation - The company expects its advertising business to grow by 10% and other business segments by 21%, contributing to overall revenue growth [2] - Adjusted net profit forecasts for 2025-2027 are 20.4 billion, 22.5 billion, and 25.9 billion CNY respectively, with a maintained valuation of 18x PE for 2026, resulting in a target price of 103.20 HKD per share [2]

Core Insights - On January 13, 2026, Alibaba-W (09988), Tencent Holdings (00700), and Xiaomi Group-W (01810) were the top three companies by trading volume in the Southbound Stock Connect, with trading amounts of 81.05 billion, 29.45 billion, and 28.57 billion respectively [1] - The same companies also led in trading volume in the Shenzhen-Hong Kong Stock Connect, with trading amounts of 58.01 billion, 23.48 billion, and 21.05 billion respectively [1] Southbound Stock Connect (Shanghai-Hong Kong) - Alibaba-W (09988) had a trading amount of 81.05 billion and a net buy amount of -90.46 million [2] - Tencent Holdings (00700) recorded a trading amount of 29.45 billion with a net buy amount of +6.61 million [2] - Xiaomi Group-W (01810) achieved a trading amount of 28.57 billion and a net buy amount of +3.24 billion [2] - Other notable companies included Goldwind Technology (02208) with 23.07 billion and a net buy of +85.70 million, and SMIC (00981) with 22.72 billion and a net buy of -1.73 billion [2] Southbound Stock Connect (Shenzhen-Hong Kong) - Alibaba-W (09988) had a trading amount of 58.01 billion and a net buy amount of +1.16 billion [2] - Tencent Holdings (00700) recorded a trading amount of 23.48 billion with a net buy amount of +749 million [2] - Xiaomi Group-W (01810) achieved a trading amount of 21.05 billion and a net buy amount of +283 million [2] - Other significant companies included SMIC (00981) with 18.13 billion and a net buy of -661 million, and Kuaishou-W (01024) with 12.21 billion and a net buy of +114 million [2]

Market Overview - The Hong Kong stock market indices collectively rose, with the Hang Seng Index increasing by 0.9% to close at 26,877.42 points, the Hang Seng Tech Index up by 0.11%, and the State-Owned Enterprises Index rising by 0.71% [1][7]. Sector Performance - **Technology Stocks**: Mixed performance observed, with Alibaba and Bilibili both rising over 3%, while Kuaishou fell over 2%, and Xiaomi and Baidu dropped over 1% [1][7]. - **Biopharmaceutical Sector**: Strong performance noted, particularly with WuXi AppTec rising over 8%. The upcoming JPMorgan Healthcare Conference is expected to act as a catalyst for the innovative drug market, with expectations for updates on the operational progress of Chinese innovative drug companies [3][9]. - **Gold Stocks**: Continued upward trend, with China Gold International increasing over 7%. Citigroup has aggressively raised its short-term outlook for precious metals, predicting gold prices could reach $5,000 per ounce and silver $100 per ounce within the next three months, driven by geopolitical risks, physical shortages, and uncertainties in Federal Reserve policies [3][9]. - **Commercial Aerospace Sector**: A pullback was observed, with Goldwind Technology declining over 9%. Recent shareholder sell-offs have contributed to market volatility. However, significant breakthroughs in reusable rocket technology in China are expected to reshape the cost structure of the aerospace industry, benefiting upstream companies in aerospace manufacturing, new materials, and satellite applications [3][9]. New Listings - Three new stocks were listed today, with Zhaoyi Innovation rising over 37%, BBSB International up over 11%, and Hongxing Cold Chain increasing by 0.33% [4][9].

Core Insights - The 2026 Kuaishou New Year Festival has entered a critical preparation phase, with the theme "Good New Year Goods, Real Savings" and aims to create a comprehensive growth pathway for merchants and influencers through dual-channel efforts in content and merchandise [1] Group 1: Content Strategy - The content arena is identified as the primary demand engine for the New Year Festival, with tiered participation thresholds based on historical transaction capabilities of influencers and merchants [4] - Incentives include full-cycle large events for influencers with over 1 million in single transaction capability, peak-breaking incentives for those with over 200,000, and themed category days for those with over 50,000 [4] - New influencers with transaction capabilities between 10,000 and 50,000 can participate in a "Red Packet Rain" initiative to help them achieve initial conversions [4] Group 2: Merchandise Strategy - The merchandise arena is crucial for merchants to achieve explosive business growth during the festival, catering to user demand and managing long-tail content traffic [5] - Key channels for sharing merchandise traffic include "Big Brand Subsidies," "Official Discounts," and "Daily Flash Sales," which provide exposure and promotional support for approved products [6] Group 3: Product Policy - The focus on "explosive products" aims to drive scalable growth, with plans to support high-demand product categories and provide tiered subsidies and influencer distribution support [7] - The "Super Link" initiative will enhance product conversion by linking quality goods with merchant supply and fulfillment, targeting key New Year product categories [7] - A "Fuyou Plan" is introduced to help influencers achieve significant growth in their sales performance, thereby enhancing overall GMV [7] Group 4: Overall Objective - Kuaishou e-commerce is committed to collaborating with merchants and influencers to promote authentic New Year flavors nationwide [9]

Core Viewpoint - The report by Jefferies emphasizes that artificial intelligence will remain the primary theme in China's internet market through 2026, followed by the defensive entertainment sector and the rapidly growing tourism industry [1] Group 1: Market Trends - The market has already factored in recent consumer sentiment and monthly Gross Merchandise Volume (GMV) growth, with a year-on-year GMV increase of 7.5% in the third quarter of September, and growth rates of 4.9% and 1.5% for October and November respectively compared to the same period last year [1] Group 2: Company Preferences - Jefferies lists Alibaba-W (09988) and Tencent Holdings (00700) as the top picks in the internet sector, followed by Baidu Group-SW (09888), Trip.com Group-S (09961), NetEase-S (09999), Kuaishou-W (01024), Tencent Music-SW (01698), JD Group-SW (09618), and Meituan-W (03690) [1] Group 3: E-commerce Focus - The focus in the fast e-commerce sector is shifting from low Average Order Value (AOV) orders to high AOV orders, as the latter offers better unit economics under healthy industry conditions [1] Group 4: Kuaishou Developments - Kuaishou's AI-generated model "K可灵AI" has launched several new products, with analysis indicating that its motion control feature has gained significant popularity in overseas markets since late December and into January, with expectations that Kuaishou's fourth-quarter performance will meet projections [1]