Core Viewpoint - The report from CICC maintains the earnings forecast and outperform rating for Kuaishou-W (01024), with a target price of HKD 89, indicating an upside potential of 18% based on 15/13x 25/26 year Non-IFRS P/E [1] Group 1: OneRec Recommendation System - Kuaishou launched the end-to-end generative recommendation model OneRec during the 2Q25 earnings disclosure, which enhances user engagement through deep understanding of user behavior and dynamic adaptation [2] - OneRec's architecture significantly reduces communication and storage costs, with operational costs only 10.6% of traditional recommendation processes; it currently handles 25% of requests on Kuaishou and Kuaishou Lite, leading to increased user engagement [2] - The model is expected to improve user stickiness and time spent on the platform while reducing bandwidth and user retention costs, with potential applications in marketing and e-commerce [2] Group 2: Keling Ecosystem Development - Keling achieved revenue exceeding 250 million yuan in 2Q25, showing significant quarter-on-quarter growth; the technology has surpassed competitors in performance metrics [3] - Keling upgraded its creator program to empower creators through inspiration values, cash incentives, and Kuaishou traffic support, with AI content viewership increasing by 321% compared to six months ago [3] Group 3: Creator Ecosystem and Commercialization - The creator ecosystem is thriving, with a 100% increase in submissions from creators with over 10,000 followers and an 8% growth in the number of professional streamers [4] - The e-commerce division reports over 6.6 million commercial content posts daily, attracting more than 320 million viewers and generating revenue for 3.7 million creators [4] - Kuaishou is exploring monetization opportunities in emerging content areas such as short dramas and mini-games, expecting to generate significant revenue for creators in the coming year [4]