Ge Long Hui·2026-01-22 03:47Core Viewpoint - The report from China Merchants Securities initiates a "Buy" rating for Kuaishou with a target price of HKD 100, highlighting its advantages in AI technology and commercialization potential, along with attractive valuation [1] Group 1: AI Technology and Competitive Advantage - Kuaishou possesses a distinct competitive edge in its core business and AI applications compared to AI leaders like Zhipu, MiniMax, OpenAI, and Perplexity, especially following significant upgrades since December last year, which have led to notable growth trends [1] - The company enhances its monetization potential through robust core business growth and a unique community ecosystem, with AI technology upgrades (such as OneRec and OneResearch) driving efficiency improvements in advertising and e-commerce [1] Group 2: Future Revenue Projections - The firm forecasts that Kuaishou's core business revenue from advertising and e-commerce will grow by 12% and 9% respectively in 2026 and 2027, supported by ongoing AI technology upgrades and operational efficiency improvements that will further enhance profit margins [1]