2026-01-07 03:05Kuaishou Technology (1024.HK) Conference Call Summary Company Overview - Company: Kuaishou Technology - Ticker: 1024.HK - Industry: AI Video Generation Key Points Industry Dynamics - The AI video generation industry is in its early stages, with a Total Addressable Market (TAM) projected to grow from US$1 billion in 2025 to US$39 billion by 2033, representing a 56% CAGR [6][15] - The Professional (2P) segment of the TAM is expected to expand from US$700 million in 2025 to US$17 billion by 2033, with a 49% CAGR [6][15] - The Business (2B) segment is anticipated to grow from US$400 million in 2025 to US$22 billion by 2033, outpacing the Professional segment with a 66% CAGR [6][15] Company Performance - Kuaishou's share price increased by 11% on January 5, 2026, attributed to the strong performance of the Kling AI model and positive sentiment towards AI applications [1] - Revenue forecasts for Kuaishou are now US$140 million+ for 2025 and US$230-240 million for 2026, with potential upside due to the popularity of the Kling AI 2.6 Motion Control feature [7][16] - The current share price implies a 10X PE for Kuaishou's main platform and 25X P/S for Kling, suggesting a valuation of US$5-6 billion [7][21] User Adoption and Growth - Kling AI has seen a significant increase in user engagement, with daily grossing rising 113% from December 27, 2025, to January 3, 2026, and weekly grossing increasing 64% [2] - The Motion Control feature of Kling AI has gone viral, particularly in markets like Korea and the US, contributing to its rapid growth [2][5] Competitive Positioning - Positive user feedback highlights Kling AI's realistic motion and lifelike facial expressions, positioning it favorably against competitors like Runway [5] - Despite a 60%+ increase in pricing for the new models compared to previous versions, Kling AI remains competitive against overseas peers [5][20] Future Outlook - Upcoming releases of new functions and versions of video models are expected to enhance production efficiency and broaden use cases [8] - Enterprise clients now account for 40% of Kling's revenue, indicating a growing demand for professional video usage [8] Risks and Considerations - Key downside risks include slower-than-expected recovery in advertising budgets, weaker monetization of Kling, and lower profitability [24] - The company maintains a Buy rating with a 12-month price target of HK$83, indicating a potential upside of 12.8% from the current price [26] Conclusion Kuaishou Technology is positioned to capitalize on the expanding AI video generation market, with strong user adoption and innovative features driving growth. The company faces risks but maintains a favorable outlook supported by robust revenue forecasts and competitive positioning.