据弗若斯特沙利文资料，用户使用万兴科技旗下模型生成5秒1080P视频片段的平均成本是业界最低之 一。同时，万兴天幕2.0海外版ToMoviee 2.0 AI曾斩获VBench-2.0相关榜单全球前三，跻身全球第一梯 队。 值得关注的是，Kling AI依托快手系的内容平台与流量营销生态，通过持续迭代玩法与体验，在平台闭 环中快速兑现消费需求；万兴天幕AI作为第三方创意工具，面向以短视频创作者为代表的C端个人创作 者，也面向B端企业用户。此外，万兴天幕AI产品还可与万兴科技旗下Wondershare Filmora、万兴喵影 视频创意等产品形成强协同，其生成素材可通过万兴喵影等视频剪辑产品再创作，形成更具商业价值的 视频成片。 中证报中证网讯（记者 万宇）近期，AI视频生成应用Kling AI在海外市场的付费表现持续升温，Kling AI推出的相关"一键生成"功能，大幅降低创作门槛。除了Kling AI，由AIGC软件A股上市公司万兴科技 （300624）基于大模型万兴天幕2.0推出的万兴天幕AI同样受到关注，万兴天幕AI是音视频创作全链路 赋能的代表，可以高效适配优质算力，提供视频、图片、音频生成能力，并支持 ...

Lincoln Kong, CFA +852-2978-6603 | lincoln.kong@gs.com Goldman Sachs (Asia) L.L.C. 6 January 2026 | 12:51PM HKT Equity Research Kuaishou Technology (1024.HK): Kling new model gaining momentum, potential upside to FY26 revenue and valuation; Buy On Jan 5th 2026, Kuaishou share price surged +11% (vs. HSI flat), likely fueled by the Kling AI strong user and grossing momentum in recent weeks, and the positive sentiment and valuation towards AI applications/video generation tools, in our view. We see Kling's mod ...

Core Insights - Kuaishou reported a total revenue increase of 14% YoY to RMB35.6 billion in 3Q25, with adjusted net profit growing by 26% YoY to RMB4.99 billion, driven by enhanced operating efficiency [1] - The company expects total revenue to grow by 10% YoY in 4Q25, primarily supported by online marketing and e-commerce growth [2] Revenue Breakdown - Online marketing revenue increased by 14% YoY to RMB20.1 billion, accounting for 57% of total revenue, supported by AI-enhanced ad targeting and increased ad budgets from lifestyle services [2] - Other services revenue rose by 41% YoY to RMB5.88 billion, driven by solid e-commerce performance and Kling AI contributions, with e-commerce GMV increasing by 15% YoY to RMB385 billion [2] - Live streaming revenue grew by 3% YoY to RMB9.57 billion, representing 27% of total revenue [2] AI Impact - Kling AI's revenue surpassed RMB300 million in 3Q25, with management projecting full-year revenue of approximately US$140 million (around RMB1 billion) for FY25 [3] - AI models like OneRec contributed an additional 4-5% growth in domestic online marketing service revenue [3] - The launch of OneSearch, a generative retrieval architecture, improved product matching and drove approximately 5% growth in shopping mall search order volume [3] Margin and Efficiency - Adjusted net profit margin (NPM) increased by 1.3 percentage points YoY to 14.0% in 3Q25, attributed to enhanced efficiency and operating leverage [4] - The company is leveraging AI in various operational areas, including coding, content review, and customer service, to improve efficiency [4] - Management anticipates mid-to-high double-digit percentage growth in FY25E capex due to AI investments, while remaining confident in the YoY expansion of adjusted operating profit margin (OPM) [4]

Core Insights - Company reported a 14% year-over-year (YoY) revenue growth in 3Q25, reaching RMB35.6 billion, which was 1% above consensus expectations [2] - Operating profit surged by 70% YoY to RMB5.3 billion, exceeding consensus by 16% [2] - The integration of AI across various business segments is driving sustainable profitable growth, with a focus on monetization and operational efficiency [1] Revenue and User Metrics - Daily Active Users (DAUs) reached a record high of 416 million, indicating strong user engagement [2] - Online advertising revenue grew by 14% YoY, benefiting from AI model enhancements, with domestic online ad revenue increasing by over 16% YoY [2] - E-commerce Gross Merchandise Volume (GMV) grew by 15% YoY, with pan-shelf-based GMV increasing by 37% YoY [2] Profitability and Margins - Operating profit margin (OPM) was reported at 14.9%, with domestic OPM at 15.7% and overseas OPM at -5.5% [2] - Adjusted net profit margin (NPM) was 14.0%, aligning with consensus expectations [2] AI Integration and Strategic Focus - Company has effectively integrated AI into its operations, enhancing material production, ad targeting, product matching, and user acquisition efficiency [1] - The focus on AI is expected to continue driving improvements in both e-commerce and online advertising segments [3] Future Outlook and Valuation - Company maintains its revenue forecasts for FY2025-27, reflecting consistent strategic execution [1] - New target price set at HK$66.0, based on an 11.0x FY2026E adjusted EPS of HK$6.00 [3]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 rose by 14.2% year-over-year to RMB 35.6 billion [5][32] - Adjusted net profit increased by 26.3% year-over-year to RMB 5 billion, with an adjusted net margin of 14% [5][36] - Operating profit surged by 69.9% year-over-year to RMB 5.3 billion [36] Business Line Data and Key Metrics Changes - Revenue from online marketing services reached RMB 20.1 billion, up 14% year-over-year [14][33] - E-commerce GMV grew by 15.2% year-over-year to RMB 385 billion [18] - Live streaming revenue increased by 2.5% year-over-year to RMB 9.6 billion [26][34] Market Data and Key Metrics Changes - Average Daily Active Users (DAUs) on the Kuaishou app surpassed 416 million, marking the third consecutive quarter of record highs [5][12] - Monthly Active Users (MAUs) reached 731 million [11] Company Strategy and Development Direction - The company continues to advance its AI strategy, focusing on scenario-based applications and innovative use cases [5][30] - Kling AI has been positioned as a key technology for video generation, with a focus on empowering creators and expanding its use cases [8][43] - The company aims to transform its organizational structure and product design to enhance its competitive edge in the AI era [30][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth prospects of Kuaishou, emphasizing the importance of AI in driving operational efficiency and business value [36][37] - The company anticipates continued investment in AI technologies to unlock further value across its content and business ecosystems [30][76] Other Important Information - The company declared a special dividend of HKD 2 billion in Q3, reflecting its solid financial position [36] - Total marketing spending from Omni Domain Platform marketing solutions accounted for over 65% of closed-loop marketing spending [15] Q&A Session Summary Question: Competitive landscape of video generation AI and Kling AI's strategy - Management acknowledged the growing competition in the video generation market and emphasized the importance of continuous innovation to meet user needs [40][42] Question: AI-powered business and operational efficiency - Management highlighted the integration of AI across Kuaishou's operations, improving content understanding, generation, and recommendations [48][51] Question: Online marketing services revenue acceleration - Management attributed the growth in online marketing services to increased impressions and higher CPM driven by AI technologies [55][57] Question: CapEx and profit margins related to AI investments - Management expects total CapEx for 2025 to increase in the mid to high double digits year-over-year, driven by investments in AI initiatives [74][76]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 rose by 14.2% year over year to RMB 35.6 billion, driven by growth across all business segments [3][29][30] - Adjusted net profit increased by 26.3% year over year to RMB 5 billion, with an adjusted net margin of 14% [3][33] - Operating profit surged by 69.9% year over year to RMB 5.3 billion, reflecting improved operating efficiency [29][31] Business Line Data and Key Metrics Changes - Revenue from online marketing services reached RMB 20.1 billion, up 14% year over year, with growth attributed to AI-driven enhancements in marketing solutions [12][30][46] - E-commerce GMV grew by 15.2% year over year to RMB 385 billion, supported by merchant incentives and traffic optimization [17][18] - Live streaming revenue increased by 2.5% year over year to RMB 9.6 billion, driven by high-quality content and AI innovations [24][31] Market Data and Key Metrics Changes - Average Daily Active Users (DAUs) on the Kuaishou app reached 416 million, marking the third consecutive quarter of record highs [3][10] - Monthly Active Users (MAUs) reached 731 million, reflecting sustained user growth and engagement [9][10] - Total spending from online marketing services driven by AI-generated marketing materials exceeded RMB 3 billion in Q3 [9] Company Strategy and Development Direction - The company continues to advance its AI strategy, focusing on scenario-based applications and innovative use cases to enhance operational efficiency and profitability [3][4] - Kuaishou aims to empower creators through its Kling AI platform, which has achieved significant advancements in video generation capabilities [5][6] - The strategic focus is on AI-powered film and television production, with plans to expand applications beyond traditional media [36][37] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth prospects, emphasizing the importance of AI in driving innovation and operational efficiency [33][34] - The competitive landscape for video generation AI is expected to evolve rapidly, with Kuaishou positioning itself to leverage its technological advancements [35][36] - Future investments will prioritize user needs and AI capabilities to enhance the overall business ecosystem [28][34] Other Important Information - The company declared a special dividend of HKD 2 billion in Q3, reflecting confidence in its financial position [33] - Total cash and cash equivalents amounted to RMB 106.6 billion as of September 30, 2025, indicating a robust balance sheet [33] Q&A Session Summary Question: Insights on Kling AI's competitive strategy - Management highlighted the attractiveness of the video generation market and the ongoing innovation driven by increasing competition [35] - The focus remains on empowering creators and enhancing technology for film and television production [36] Question: AI's role in content ecosystem and operational efficiency - AI technologies have been integrated across Kuaishou's operations, improving content understanding, generation, and recommendations [41][43] - The company is leveraging AI to enhance customer service efficiency, with over 70% of inquiries handled by AI systems [43] Question: Online marketing services revenue acceleration - Online marketing services revenue grew by 14% year over year, driven by increased impressions and higher CPM due to AI enhancements [46] - The company continues to optimize its marketing solutions to improve conversion rates and client spending [49]

Core Insights - Video Rebirth, founded by Liu Wei, has completed a $50 million seed round funding to develop a video generation model aimed at the professional creative industry [2] - The company aims to make video creation as intuitive as conversing with a chatbot, providing controllable, high-fidelity, and physics-compliant AI video creation capabilities [2] - The funding will accelerate the development of their proprietary "Bach" model and unique "Physics Native Attention (PNA)" architecture, addressing significant challenges in the AI-generated entertainment (AIGE) sector [2] Funding and Development - The seed funding round was backed by Qiming Venture Partners and South Korean gaming company Actoz Soft Co. [2] - Video Rebirth plans to release the Bach model in December, along with an AI video generation platform to compete with OpenAI Sora [2][3] Competitive Landscape - Video Rebirth is entering a competitive field with major players like Google, ByteDance, and Kuaishou, which have shown strong monetization capabilities [3] - Kuaishou's Kling AI is projected to exceed $100 million in annual revenue by February next year [3] Model Performance - The newly evaluated Avenger 0.5 Pro model has shown significant performance improvements compared to its predecessor, ranking second in the Image to Video category on the Artificial Analysis Video Arena [3] - The model has not yet been made publicly accessible [3] Market Positioning - Liu Wei believes that while the landscape for large language models is dominated by major players, there is a fair opportunity for smaller teams in the video generation space [4] - The company will initially target professional users in the U.S. with a subscription model priced lower than Google Veo [4] Team and Expertise - Liu Wei and his team spent three months training the first version of their model, which incorporates industry-standard techniques with improvements for realistic object generation [4] - The team avoided using short video content for training to ensure higher model quality [4]

Kuaishou Conference Call Summary Company Overview - **Company**: Kuaishou - **Industry**: Short-form video and online marketing - **Position**: 2nd largest player in the short-form video market in China, with a strong creator and user ecosystem driving content generation and monetization [1][10][11] Key Insights AI Transformation - Kuaishou is undergoing a holistic AI transformation aimed at enhancing content generation, recommendation, and advertising targeting, which is expected to improve platform engagement and monetization over time [1][4][9] - The AI recommendation model, OneRec, is projected to boost monetization and improve content-user matching, currently covering 25% of user traffic with plans to expand to 50-60% [4][50] Advertising Revenue - **Revenue Composition**: 57% of Kuaishou's revenue comes from online marketing, with internal and external advertising loops contributing equally [10] - **External Ads**: Expected to grow at 12% YoY in 2025, driven by increased usage, ad load, and eCPM growth [5][61] - **Internal Ads**: Anticipated to grow at 14% YoY in 2025, supported by GMV growth from livestreaming and shelf-based categories [6][76] User Engagement - Kuaishou's platform sees an average daily time spent of 127 minutes per user, with a user base of 714 million MAUs [11] - The platform is particularly strong in lower-tier cities, focusing on community building and user interaction rather than viral content [10] Livestreaming and E-commerce - Livestreaming is a significant growth driver, particularly for smaller ticket items like health and fitness products, with expected growth of 8% YoY [3][79] - Shelf-based GMV is projected to grow at 32% YoY, driven by categories such as household necessities and food [6][79] Financial Projections - **Target Price**: Kuaishou is rated as "Outperform" with a target price of HKD 100, reflecting a 47% upside potential [9] - **Adjusted EPS**: Expected to increase from RMB 4.02 in 2024 to RMB 4.89 in 2025, with an adjusted P/E ratio decreasing from 19.5x to 16.0x [7][9] Additional Insights - Kuaishou's advertising strategy is heavily focused on performance ads, which account for 80% of its platform, benefiting from a loyal user base and high purchase frequency in lower-tier markets [2][22] - The company has the lowest percentage of additional rebates among Chinese e-commerce platforms, which is expected to reduce further in 2H25 [3][35][91] - AI tools are being utilized to enhance ad targeting and content creation, with significant improvements in engagement and conversion rates noted [49][51] Conclusion Kuaishou is positioned for growth through its AI initiatives, strong user engagement, and a robust advertising model. The focus on community-driven content and e-commerce, particularly in lower-tier cities, presents a unique opportunity for sustained revenue growth in the competitive landscape of short-form video and online marketing.

Summary of Kuaishou Technology Conference Call Company Overview - **Company**: Kuaishou Technology (1024.HK) - **Event**: Asia Leaders Conference 2025 - **Date**: September 4, 2025 - **Location**: Hong Kong Key Industry Insights Kling AI - **Revenue Composition**: 70% of Kling AI's revenue comes from professional users, including AI freelancers, creators, and studios, while 30% is generated from API partnerships with over 20,000 enterprise clients [5] - **Geographical Revenue Distribution**: 70% of revenue is from overseas regions, and 30% is domestic [5] - **Competitive Landscape**: There are three major players in the AI video generation industry, each with distinct advantages. Kling AI focuses on professional users and has competitive advantages in user base, controllability, and real-world reflection in both input and output [5] - **User Retention**: Management noted infrequent user switching to other platforms unless a significantly stronger or cheaper model emerges [5] - **Gross Margin**: Kling AI's gross margin is currently positive and expected to grow, although high amortization from training chips remains a challenge. Management anticipates continued narrowing of losses [5] - **Capex and Computing Power**: Capex and computing power are not bottlenecks, with sufficient training chips available. Inference chips are lower-performance and sourced domestically [5] E-commerce and Advertising Monetization - **Overall Take Rate**: Kuaishou's overall take rate is less than 4%, with approximately 1% from e-commerce commissions and 2-3% from e-commerce ads [9] - **Livestreaming E-commerce**: Accounts for over 60% of total GMV (Gross Merchandise Volume) with a take rate of 4% [9] - **Shelf-based E-commerce**: Represents 32% of total GMV in Q2 2025, with a lower take rate of less than 2% [9] - **Service Tools for Merchants**: The company is enhancing service tools for merchants, allowing cost savings from content creation to be redirected towards purchasing traffic on Kuaishou [9] - **Long-term Take Rate Potential**: Management believes the platform's take rate can exceed 5% in the long term, benchmarking against peers [9] Financial Projections and Risks - **Price Target**: Kuaishou is rated as a "Buy" with a 12-month target price of HK$83, representing an upside of 18.7% from the current price of HK$69.90 [8] - **Market Capitalization**: HK$298.1 billion / $38.2 billion [8] - **Revenue Forecasts**: Projected revenues for the next few years are Rmb 126.9 billion in 2025, Rmb 142.8 billion in 2026, Rmb 157.6 billion in 2027, and Rmb 172.6 billion in 2028 [8] - **Key Risks**: 1. Slower-than-expected recovery in ad budgets [7] 2. Weaker-than-expected monetization [7] 3. Slower growth in user engagement [7] 4. Lower-than-expected profitability [7] 5. Weaker-than-expected progress in AI [7] Conclusion Kuaishou Technology is focusing on enhancing its AI capabilities and monetization strategies in e-commerce and advertising. The company is optimistic about its growth potential, despite facing competitive pressures and market risks. The management's insights into user retention and service enhancements for merchants indicate a strategic approach to maintaining and growing its user base and revenue streams.

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the **AI industry in China**, particularly the adoption and monetization of AI technologies by major internet and software companies in Q2 2025 [1][2]. Core Insights and Arguments - **AI Adoption**: Companies are increasingly integrating AI into their products and services to enhance user experience and maintain competitiveness. This includes innovations in search, content recommendation, and productivity tools [1]. - **Internal Efficiency Gains**: There is a notable rise in the use of AI for coding, AI-generated content (AIGC), and customer service, which has led to improvements in gross and operating margins [1]. - **Monetization Progress**: Direct monetization of AI products is advancing, especially in content generation, with significant revenue growth reported in various sectors [2]. Financial Performance and Projections - **Revenue Growth**: Major Chinese Cloud Service Providers (CSPs) have seen revenue forecasts raised by 2% to 9% for 2025, driven by increasing AI-related demand. For instance, Bilibili and Weibo reported over 10% increases in effective cost per mille (eCPM) for performance-based ads [2]. - **Cloud Revenue**: Companies like Kingdee and Yonyou reported accelerating cloud revenue, supported by rising AI adoption among customers, which is expected to further enhance subscription revenue [2]. - **Specific Revenue Figures**: Kuaishou's Kling reported Q2 revenue of RMB 250 million, up 67% quarter-over-quarter, while iFlytek's AI learning pads saw revenue double year-over-year in H1 2025 [2]. Capital Expenditure (Capex) Trends - **Capex Outlook**: Chinese internet leaders are maintaining their capex guidance for the year, focusing on improving chip utilization and deployment efficiency, particularly in light of uncertain US chip supply [3]. - **Investment in Domestic Chips**: There is a rising emphasis on domestic chip options, with companies exploring flexible AI chip alternatives to mitigate supply chain risks [3]. Stock Recommendations - **Positive Outlook on Stocks**: Analysts express a favorable view on several companies: - **Tencent**: Beneficiary of AI-driven ad growth and opportunities within the WeChat ecosystem [4]. - **Kuaishou**: Early revenue traction in video generation [4]. - **Alibaba**: Largest cloud vendor in China and a leading provider of large language models (LLMs) [4]. - **Meitu and Kingdee**: Notable for their successful transformations and AI monetization strategies [4]. Additional Insights - **AI in Advertising**: AI capabilities have significantly improved ad performance metrics, with Tencent reporting a 20% year-over-year growth in marketing services revenue [25]. - **Emerging AI Applications**: Companies are launching innovative AI applications across various sectors, including logistics, education, and customer service, indicating a broadening scope of AI integration [7][9]. Risks and Challenges - **Competitive Landscape**: The evolving competitive environment poses risks, including intensified competition and fast-moving technology trends [38][39][40]. - **Regulatory Changes**: Companies face potential regulatory challenges, particularly concerning data usage and online content [40][41][42]. This summary encapsulates the key points discussed in the conference call, highlighting the current state and future outlook of the AI industry in China, along with specific company performances and strategic recommendations.