Ge Long Hui·2025-10-02 03:19Core Viewpoint - Kuaishou's multi-modal capabilities are expected to maintain a leading position through iterative improvements, with the 2.5 Turbo version likely to drive user growth and revenue due to a combination of performance upgrades and a 30% price reduction [1] Group 1: Product Development - The Kuaishou 2.5 Turbo model has significantly enhanced text understanding, providing more refined responses and logical comprehension [1] - Improvements in dynamic quality have resulted in smoother and more stable video performance, reducing issues of distortion and incoherence [1] - Aesthetic upgrades have enhanced visual appeal, including better composition and lighting [1] - The "Ling Animation Canvas" feature has been fully launched to support creator collaboration [1] Group 2: Pricing Strategy - The price of the Kuaishou 2.5 Turbo has been reduced by 30%, making it more cost-effective at 25 Linggan values for a high-quality 5-second video, compared to 35 Linggan values for the 2.1 version [2] - The pricing advantage is notable when compared to competitors, with Kuaishou priced at 0.5 CNY per second, while competitors like Seedance1.0 and Veo3 are priced at 0.64 CNY and 0.87 CNY per second, respectively [2] Group 3: Commercialization and Efficiency - Kuaishou has made significant progress in enhancing commercialization efficiency through AI, particularly in e-commerce and advertising [3] - The OneSearch framework has been deployed in multiple e-commerce search scenarios, serving millions of daily active users and generating millions of page views, leading to stable improvements in click-through rates [3] - The implementation of generative reinforcement learning in advertising has resulted in over a 3% increase in advertising revenue since 2025 [3] Group 4: Financial Projections - The company is projected to achieve adjusted net profits of 19.6 billion CNY, 23 billion CNY, and 25.9 billion CNY for the years 2025, 2026, and 2027, respectively [3] - Based on comparable company valuations, a 17x PE ratio for 2026 suggests a reasonable valuation of 391.1 billion CNY, equivalent to 428.1 billion HKD, with a target price of 99.07 HKD per share [3]