<div id="readability-page-1"><div><p>UBS published a research report stating that KUAISHOU-W (01024.HK)<span> </span><span> -0.360 (-0.795%)  </span> <span> Short selling $256.55M; Ratio 15.734%  </span> 's results for 1Q26 were in line with expectations, with the commercialization performance of Kling emerging as a key highlight. Kling's revenue for 1Q26 accelerated to over 90% QoQ growth, reaching more than RMB650 million, exceeding both the brokers and market expectations. In addition, Kling AIs annualized recurring revenue (ARR) run rate approached USD500 million in March, representing YoY growth of more than 4x. Although affected by macro headwinds, the broker expects KUAISHOU-Ws core business outlook for 2Q26 to remain weak. However, management maintains a positive stance on Klings commercialization, and the recent improvement in ARR is encouraging. As a result, UBS raised its revenue forecast for Kling in 2Q26 to RMB840 million.</p><p>UBS noted that KUAISHOU-Ws total revenue for 1Q26 increased 3% YoY to RMB33.716 billion, in line with expectations. Among segments, advertising, other services and live streaming revenue changed YoY by +9.3%, +15.9% and -13.5%, respectively. Although KUAISHOU-Ws core e-commerce and advertising businesses face macro challenges, and Klings continued expansion is expected to exert additional pressure on group-level profitability in areas such as computing and research and development, the broker believes that the markets conservative expectations regarding accelerating Kling-related expenses have already been reflected in the share price. UBS maintains a positive view on KUAISHOU-W, citing its proactive strategy to capture market share, attractive valuation, and the view that Klings earnings impact has been largely digested by the market.</p><p>UBS stated that due to a slightly more conservative outlook on revenue and margins, it trimmed its 2026 adjusted net profit forecast for KUAISHOU-W by 3%. Nevertheless, in light of the valuation uplift of Kling, the broker raised its TP for KUAISHOU-W from HKD68 to HKD70 using a sum-of-the-parts (SOTP) methodology, and maintained a Buy rating. (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-28 12:25.)</p></div></div>

01024

<p>UBS has raised its target price for KUAISHOU-W from HKD68 to HKD70, following a report that 1Q26 results met expectations. Key highlights include Kling's revenue growth of over 90% QoQ, reaching RMB650 million. Despite macro challenges, UBS maintains a positive outlook on KUAISHOU-W's strategy and valuation, while slightly trimming its 2026 adjusted net profit forecast by 3%. The broker continues to rate the stock as a Buy.</p>

- UBS's research report indicates that KUAISHOU-W's 1Q26 results met expectations, with Kling's revenue showing a notable QoQ growth of over 90%.  
- The annualized recurring revenue for Kling approached USD 500 million, reflecting more than 4x YoY growth, despite a weak outlook for KUAISHOU-W's core business in 2Q26.  
- UBS has adjusted its 2026 adjusted net profit forecast down by 3% but raised the target price for KUAISHOU-W to HKD 70, maintaining a Buy rating.

UBS Raises KUAISHOU-W TP to HKD70; 1Q26 Results In Line