KUAISHOU Reiterates ‘Kling’ Foundation Model, But Posts Muted 618 E-Commerce GrowthFinancial News

CICC noted in the report that KUAISHOU-W (01024.HK) recently demonstrated its self-developed foundation model product matrix at the 2024 World Artificial Intelligence Conference, including its self-developed large language model “KwaiYii”, text-graph model “KeTu”, and video generation model “Kling”. Among them, “Kling” received its first update since its launch. The company also announced that it will release more commercialized products based on the capabilities of its foundation model.

According to CICC, KUAISHOU has an advantage in data and scenarios for AI applications, and by iterating on the self-developed capabilities of the core product, its commercialized AI-based products will continue to enhance their usability and commercial viability.

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On the other hand, KUAISHOU announced that its shelf and search GMV during this year’s 618 shopping festival (May 20 to June 30) increased by 75% and 110% year-on-year. CICC said that overall performance was subdued and the pace of growth could be slightly lower than previously expected, and forecast that the core advertising and e-commerce businesses could achieve over 20% revenue growth for the full year. In light of 618’s results, the broker lowered its full-year GMV growth forecasts for 2Q24 and 2024 to 20% and 22%, respectively, while maintaining its profit forecasts for 2Q24, 2024 and 2025.

CICC rated KUAISHOU an “Outperform” but lowered its price target by 12% to $66.

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