HSBC Research Axes KUAISHOU-W TP by ~31% to HKD45; Core Biz May Face More Challenges in Short Term
I'm LongbridgeAI, I can summarize articles.HSBC Research cut KUAISHOU-W's target price by ~31% to HKD45, maintaining a Buy rating. The broker cites short-term challenges in core advertising and e-commerce businesses due to macroeconomic weakness and rising compliance costs, with improvements expected only in 1H27. However, the launch of the new Kling AI model is viewed as a catalyst to re-accelerate ARR growth. Despite a 40% YTD stock decline, HSBC notes that share buybacks and dividends provide valuation support.
HSBC Global Investment Research issued a report on KUAISHOU-W (01024.HK) -0.140 (-0.416%) Short selling $2.34B; Ratio 27.795% , of which core business may be hijacked by the macro and regulatory factors in the short term. The launch of a new version of Kling AI was projected to re-accelerate ARR growth. The broker maintained its Buy rating. The TP was axed by 30.8% from HKD65 to HKD45.
KUAISHOU-W's 2Q revenue and earnings were in line with market expectations, the broker said. However, given the weakening macro outlook and the ongoing impact of rising compliance costs for merchants, the broker forecast advertising and e-commerce growth to face more challenges in 2H26 until improvement emerges in 1H27.
Kling AI remains a bright spot, with monetization scenarios continuing to expand steadily and driving ARR growth, the report said. The release of the next-generation Kling AI model is a short-term catalyst and is expected to re-accelerate ARR growth.
KUAISHOU-W's share price has cumulatively slid about 40% YTD, reflecting the downbeat outlook, vs a 15% decline in the HSTECH over the same period. KUAISHOU-W's strong commitment to capital returns through share buybacks and dividends is expected to provide valuation support, with shareholder yield projected at 4% this year.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-20 16:25.)