<div id="readability-page-1"><div><p>Nomura published a research report stating that although the structural growth and rapid commercialization of Kling AI at KUAISHOU-W (01024.HK)<span> </span><span> -0.420 (-0.936%)  </span> <span> Short selling $525.13M; Ratio 17.800%  </span>  bring attractive long-term potential, the stock faces severe operational headwinds in the near term, which may lead to further downward revisions to earnings forecasts. Managements conservative guidance for 2Q26 indicates a clear slowdown in growth of its core revenue streams, while upfront investment in AI infrastructure is putting pressure on profit margins.</p><p>The broker noted that KUAISHOU-W management maintained its full-year capital expenditure guidance at RMB26 billion, of which approximately RMB12 billion had already been spent in 1Q. It believes that if competition forces faster model upgrades or expansion of computing power, there remains upside risk to capital expenditure.</p><p>The broker kept its earnings forecasts for this year and next largely unchanged, lowered the TP for KUAISHOU-W from HKD57 to HKD51, and maintained a Neutral rating. It also expects gross margin to narrow by 2.3 ppts in 2026, followed by further declines of 0.5 ppts and 0.4 ppts in fiscal years 2027 and 2028, respectively. (sl/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-28 16:25.)</p></div></div>

01024

<p>Nomura has lowered its target price for KUAISHOU-Wfrom HKD57 to HKD51 while maintaining a Neutral rating. The report highlights operational challenges and a slowdown in core revenue growth, alongside significant investments in AI infrastructure impacting profit margins. Nomura expects gross margins to decline over the next few years, with capital expenditure guidance remaining at RMB26 billion for the year.</p>

- Nomura's report on KUAISHOU-W highlights attractive long-term potential from Kling AI, but notes near-term operational challenges that could lead to earnings forecast cuts.  
- The management's conservative guidance for 2Q26 reflects a slowdown in core revenue growth, compounded by pressure on profit margins due to AI infrastructure investments.  
- The broker lowered the target price from HKD 57 to HKD 51 while keeping earnings forecasts largely unchanged and expects a decrease in gross margins through 2028.

Nomura Cuts KUAISHOU-W TP to HKD51, Maintains Neutral