KUAISHOU-W(01024) rose more than 3% in early trading, UBS pointed out that the commercialization of Kuaishou is strong in the beginning of the year, and raised the target price to 108 Hong Kong dollars.

On January 28, KUAISHOU-W (01024) opened higher in the morning session and fluctuated upwards. As of the time of writing, it was reported at HK$81.25, up 3.11%, with a trading volume of approximately HK$1.24 billion. On the news front, UBS recently released a new research report stating that Kuaishou's AI product LINGAI, which is a video-generative AI product owned by Kuaishou, has shown strong commercial progress by early 2026. Based on this, UBS has raised its valuation of Kuaishou's subsidiaries and target price. UBS pointed out that after the company disclosed that LINGAI had achieved an ARR of $240 million in December 2025, according to a report by LatePost, Lingai's daily revenue in January 2026 has increased by about 30% compared to December 2025, showing further commercial potential. At the same time, Lingai's January MAU has exceeded 12 million, with a 350% increase in paying users. UBS believes that the above progress is mainly due to a series of product iterations since the end of 2025, including the world's first large-scale multimodal video model LING O1, LING 2.6 model with "audio-visual synchronization" capabilities, and a new motion control feature. Under the motion control function, users can upload local videos or select actions to imitate from the action library, upload a reference image of the character, and generate a character video with precise control of actions and expressions. The user-friendly operation and gameplay have lowered the threshold for use and driven spontaneous discussion of the product. The "pet dance" AI video that spread from Korea to the rest of the world has also allowed Lingai to have a round of "viral spread." In terms of user structure, UBS mentioned that Lingai is gradually breaking through the professional user circle and penetrating into a more extensive mass user base. The bank believes that this trend will help further expand the user base and enhance the scalability of commercialization. UBS estimates that the potential user base for video-generative AI worldwide is about 90-140 million people, corresponding to annual revenue of $11-23 billion, with the industry's overall penetration rate still at a relatively low level. Based on the above judgment, UBS has raised its forecast for Lingai's revenue in 2026 to RMB 2.3 billion, a year-on-year increase of 128%. At the same time, UBS maintains a "buy" rating on Kuaishou and raises the target price from HK$95 to HK$108. UBS stated that the increase in the target price mainly reflects the increase in the valuation of Lingai. In terms of core business, UBS expects that excluding Lingai, Kuaishou's core business (including e-commerce, advertising, and live streaming) will continue to maintain steady growth in revenue and operating profit in 2026. The current valuation level is relatively attractive compared to peers.