Group 1 - Kuaishou's stock performance is strong, with an intraday increase of nearly 7% and a trading volume of 2.709 billion HKD [2] - According to Changjiang Securities, Kuaishou's Keling AI has undergone over 30 iterations since its launch and is a global leader in video generation capabilities [2] - Keling AI announced the launch of "Ling Animation Canvas 1.0" for invitation testing, with a professional team and enterprise version expected in Q3 2025 [2] Group 2 - Citi analysts expect Kuaishou to release its Q2 2025 financial report in late August, with optimistic projections based on two main factors [2] - The commercialization of Keling AI's video generation model has exceeded expectations, with monthly revenue surpassing 100 million RMB in April and May, indicating potential for significant annual revenue growth beyond the management's guidance of 100 million USD [2] - The advertising revenue growth for Kuaishou is anticipated to accelerate to 12.3% in Q2, driven by increased advertising spending from e-commerce merchants and a recovery in non-e-commerce advertising demand [2]

Core Viewpoint - The Hong Kong stock market experienced a collective decline, but Kuaishou demonstrated resilience with a slight increase in stock price, supported by optimistic forecasts for its upcoming Q2 earnings report [1][2]. Group 1: Market Performance - On July 30, the Hang Seng Index fell by 0.43%, the Hang Seng China Enterprises Index also dropped by 0.43%, and the Hang Seng Tech Index decreased by 1.57% [1]. - Kuaishou's stock reached a peak increase of over 2% during the day, ultimately closing with a 0.42% rise at 72.4 HKD, with a trading volume of 2.91 billion HKD [1]. Group 2: Earnings Forecast - Multiple institutions have released bullish reports on Kuaishou, anticipating that the Q2 performance will meet expectations [1]. - Citigroup predicts Kuaishou's revenue for Q2 will grow by 11% year-on-year to 34.5 billion RMB, with an adjusted net profit of approximately 5.1 billion RMB, aligning with market expectations [2]. Group 3: Growth Drivers - The report highlights two main reasons for the positive outlook: the commercialization of the video generation model, which exceeded expectations, and the improved monetization capabilities of shelf e-commerce advertising [1][2]. - Kuaishou's monthly revenue surpassed 100 million RMB in April and May, indicating a strong performance that may significantly exceed the management's guidance of 100 million USD for the year [1]. - The advertising revenue growth rate is expected to accelerate to 12.3% in Q2, driven by increased advertising spending from e-commerce merchants and a recovery in non-e-commerce advertising demand [1][2]. Group 4: Valuation Adjustments - Citigroup has adjusted its valuation benchmark to 2026 earnings, raising the price-to-earnings ratio from 13 times to 15 times [3].