Guosheng: Maintains "Buy" rating on KUAISHOU-W (01024), optimistic about the performance iteration and commercialization progress of Kling AI

Guosheng released a research report maintaining a "Buy" rating on KUAISHOU-W (01024), forecasting the company's revenue for 2026-2028 at RMB 138.5/149.8/162.9 billion, with adjusted net profit attributable to shareholders of RMB 8.5/8.5/11.1 billion. On October 15, 2026, Kling AI officially launched Kling 4.0 to all users, with a simultaneous upgrade of the creation page; previously, 4.0 Flash had been opened to some users for trial on September 28. The bank is optimistic about the performance iteration and commercialization progress of Kling AI. Guosheng's main points are as follows: Kling 4.0 enhances long-shot generation, complex action, and fine control capabilities, further meeting the needs of professional content production The new version's single native generation duration has been increased from 15 seconds to 30 seconds, supporting up to 10 keyframe controls and a total of up to 15 multimodal references, with a focus on improving stability in high-speed motion, continuous actions, and complex camera movements. Among these, keyframes are used to set plot nodes, while multimodal references help maintain consistency of characters, scenes, and products; video editing features support local modifications to character actions, camera shots, backgrounds, and more. The bank believes that simultaneous improvements in generation duration, control capabilities, and editing features are expected to reduce clip splicing, repeated generation, and post-production patching, further lowering the cost of professional content production. In official preliminary testing, the model performed well in continuous fighting, complex camera movements, and object consistency According to testing by "Jiufuqiang," a creator invited by Kling official and a senior creative director at Ogilvy, with only two character assets and a scene image provided, the model was able to generate an unedited 30-second fight scene in which the characters continuously completed actions such as vaulting over a sofa, colliding with a bookshelf, and grabbing a book as a prop, with relatively natural interaction with the surrounding environment. Under high-speed whip pans and rapid push-in shots, the characters' actions also maintained good stability. In another test, two characters fought over a cross-shaped password box, and the box maintained consistent shape and details across different camera angles. These performances help meet production requirements such as continuous action sequences and multi-angle product display. Character performance and cross-scene transitions are more natural, and the ability to realize complex creative ideas is further enhanced In testing by Oasis, a creator invited by the official team, faced with the surreal setup of "a giant duck appearing in a bathroom," the characters still maintained the pace of everyday activities. In a test connecting three independent scene images into a continuous video, the model was able to fill in character movement and spatial changes, making scene transitions advance with the actions while maintaining the color tone and style of the original images. According to Oasis's feedback, these improvements reduced repeated generation and post-production patching, making it easier to translate pre-designed visual creative ideas into complete videos. Kling's commercialization continues to grow, and the full launch of 4.0 is expected to further drive paid demand In the first and second quarters of 2026, Kling's revenue exceeded RMB 650 million and RMB 850 million, respectively, up more than 300% and 200% year-on-year, totaling more than RMB 1.5 billion in the first half. The bank believes that Kling currently monetizes through user subscriptions and enterprise API services, and that production quality and usage costs directly affect willingness to pay and call volume. Kling 4.0 strengthens long-shot, fine control, and local editing capabilities, while Flash balances generation speed and cost, and is expected to meet the needs of professional production and high-frequency creation, respectively, expanding the scale of paying users. In addition, the API of 4.0 for enterprise customers and developers will be opened soon, which is expected to further drive growth in enterprise calls. Risk warnings: technology iteration falling short of expectations; commercialization progress falling short of expectations; intensifying industry competition, etc.