"Big Banks" JP Morgan: KUAISHOU-W is one of the most undervalued AI stocks globally, with an "Overweight" rating

OpenAI recently released the AI video and audio generation model Sora 2, which has improved capabilities and controllability in adhering to physical laws compared to the older version. At the same time, a new social iOS application "Sora" powered by Sora2 has been launched, currently in an invitation-only trial run in North America, allowing users to share their creative content with each other. JP Morgan published a research report indicating that KUAISHOU-W (01024.HK) stock price rose 8% yesterday (2nd), outperforming the Hang Seng Index. This is believed to be due to KUAISHOU's simultaneous ownership of China's mainstream short video platform and the globally leading AI video generation model "Keli," which is expected to launch an AI social video platform similar to the Sora application in the future.

JP Morgan reiterated KUAISHOU as the preferred stock in China's digital entertainment sector, believing that the accelerated development of its core advertising business and the value driven by AI technology in advertising has not yet been fully realized. It continues to view KUAISHOU as one of the most undervalued AI stocks globally, maintaining an "Overweight" rating with a target price of 89 yuan, corresponding to a projected price-to-earnings ratio of about 14 times for 2026