KUAISHOU(HK:01024) Huachuang Securities·2025-04-17 09:50Investment Rating - The industry investment rating is "Recommendation," indicating an expected increase in the industry index by more than 5% over the next 3-6 months compared to the benchmark index [61]. Core Insights - The report highlights the launch of Kuaishou's Keling 2.0, which aims to transform video creation in the AGI era, with a global user base exceeding 22 million as of April 15, 2025 [7][43]. - Keling AI has undergone over 20 iterations since its initial release in June 2024, showcasing significant advancements in its model architecture and capabilities [7][8]. - The commercial potential of Keling AI is emphasized, with expectations of becoming a new revenue engine for Kuaishou, particularly through cost reductions in video marketing materials by 60%-70% [43][44]. Summary by Sections Product Overview - Keling 2.0 was officially launched on April 15, 2025, as a new infrastructure for video creation, aiming to enhance Kuaishou's position in the short video production and consumption community [7][8]. Update Highlights - Significant updates include a complete overhaul of the foundational model and the introduction of multi-modal editing capabilities [8][9]. - The new DiT architecture improves the alignment of visual and textual modalities, while the redesigned VAE enhances dynamic transitions in complex scenes [9][19]. - Multi-modal editing allows users to modify videos based on a combination of video, text, and images, enabling more creative and flexible content creation [29][30]. Commercialization Potential - Keling AI is positioned as the first paid AI video tool for consumers in China, with a membership system that has shown promising revenue generation [44][48]. - The report notes that Keling AI has generated over 1 billion RMB in revenue by February 2025, indicating its growing significance in Kuaishou's overall revenue structure [48].