---
title: "CMSI Downgrades KUAISHOU-W to Underweight in One Step, Slashes TP to HKD28"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/296558166.md"
description: "CMSI downgraded KUAISHOU-W from Overweight to Underweight, slashing its target price from HKD64 to HKD28. The broker cited weaker-than-expected AI commercialization and valuation de-rating due to core business declines. Revenue is projected to enter negative growth in H2 2026 amid macro headwinds and intensified competition in video generation models. Consequently, CMSI cut 2026 and 2027 core net profit forecasts by 47% and 52% respectively."
datetime: "2026-08-21T02:21:41.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/296558166.md)
  - [en](https://longbridge.com/en/news/296558166.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/296558166.md)
generator: "portal-rs"
---

# CMSI Downgrades KUAISHOU-W to Underweight in One Step, Slashes TP to HKD28

CMSI issued a report stating that KUAISHOU-W (01024.HK) +0.300 (+0.892%) Short selling $2.34B; Ratio 27.795% is experiencing weaker-than-expected AI commercialization, while the AI narrative is unable to offset valuation de-rating caused by the decline in its core business. The broker downgraded the stock in one go from Overweight to Underweight, while slashing the TP from HKD64 to HKD28.

The report stated that KUAISHOU-W's 2Q results were broadly in line. However, impacted by multiple headwinds including macro conditions, compliance regulations and increased platform support efforts, revenue was expected to enter negative growth territory for the first time in 2H26. In the meantime, competition among video generation models intensified, while Kling revenue growth fell short of expectations, reducing visibility on model iteration and the competitive landscape.

The broker revised down its forecast for 3Q26 total revenue YoY growth from an increase of 3.4% to a decline of 7.5%, including projected YoY downfall of 4.7% in online marketing, 17% in livestreaming revenue and 10% in e-commerce revenue. On the profit side, due to falling revenue, operating deleveraging effects and continued investment in AI businesses, the broker sharply cut KUAISHOU-W's core net profit forecasts for 2026 and 2027 by 47% and 52% respectively, to RMB8.9 billion and RMB9 billion.

Regarding Kling, the broker stated that Kling AI recorded 2Q revenue of RMB850 million, up more than 200% YoY and in line. However, competition in the video generation large-model sector is intensifying rapidly. In early August, MiniMax and ByteDance launched next-generation models H3 and Seedance2.5 respectively, targeting users seeking value-for-money and high-end cinematic production capabilities. Its ranking in Artificial Analysis fell to 9th out of 12, placing it in a passive position technologically. The broker conservatively estimated Kling's full-year 2026 revenue at RMB3.5 billion (approximately USD500 million).  
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-20 16:25.)

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**