Zhi Tong Cai Jing·2025-09-24 03:28Core Viewpoint - Kuaishou-W (01024) shares rose nearly 4%, with a current increase of 3.78%, trading at HKD 76.85, with a transaction volume of HKD 1.226 billion [1] Group 1: Product Development - On September 23, Kuaishou upgraded its AI model, launching the Keling 2.5 Turbo model, which significantly enhances video generation capabilities [1] - The new model improves text understanding and response, allowing for a deeper comprehension of complex instructions with causal relationships, enabling refined control over creative expressions [1] - The dynamic effects have been enhanced, allowing for greater motion and camera movement, resulting in smoother and more stable video presentations [1] - The Keling 2.5 Turbo model generates a 5-second video in high-quality mode (1080p) for only 25 inspiration points, which is nearly 30% cheaper than the previous 2.1 model at the same level [1] Group 2: Market Outlook - Goldman Sachs forecasts that Kuaishou's new AI model will continue to drive user engagement, maintaining a prediction of AI-related revenue reaching USD 154 million for the fiscal year 2025, compared to the company's guidance of USD 125 million [1] - Goldman Sachs reiterated a "Buy" rating, with a target price of HKD 83, based on an estimated earnings multiple of approximately 14 times for the end of 2026 [1] - The firm anticipates that the new model will 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 that could disrupt traditional advertising and short film production models [1]