Xin Lang Cai Jing·2025-09-24 03:29Core Viewpoint - Kuaishou-W (01024) shares rose nearly 4%, driven by the launch of the upgraded Keling AI model, which enhances video generation capabilities and reduces costs for users [1] Group 1: Company Developments - The Keling AI model has been upgraded to version 2.5 Turbo, significantly improving text understanding and response capabilities, allowing for more nuanced control over creative expressions [1] - The new model enhances dynamic effects, enabling the generation of videos with greater motion amplitude and stability, while also improving the overall fluidity of the content [1] - Under the high-quality mode (1080p), the new model generates a 5-second video for only 25 inspiration points, which is nearly 30% cheaper compared to the previous 2.1 model at the same level [1] Group 2: Market Outlook - Goldman Sachs forecasts that the new Keling AI model will drive sustained user engagement for Kuaishou, maintaining a prediction of $154 million in AI-related revenue for the fiscal year 2025, compared to the company's guidance of $125 million [1] - The firm reiterated a "Buy" rating for Kuaishou, with a target price of HKD 83, based on an estimated earnings multiple of approximately 14 times for the end of 2026 [1] - Goldman Sachs believes that the new model can provide top-tier performance in AI video generation at a more competitive cost, highlighting that the AI video generation industry is still in its early stages with rapidly growing market potential [1]