Kuaishou-W (01024) jumped over 3% during early trading, hitting HK$70.9 to mark its highest level in nearly two years. At press time, shares were up 2.57% at HK$69.9 with turnover reaching HK$1.982 billion.

UBS highlighted growing investor enthusiasm following recent management roadshows, noting particularly positive reactions to Kuaishou's AI advancements and core commercial operations (advertising and e-commerce). The report emphasized rising interest among global investors, potentially driving future capital inflows.

Industry surveys suggest Q2 performance will likely align with expectations, while increased investments in instant retail by competitors could alleviate pressure on Kuaishou's e-commerce segment. New AI-powered advertising products launching in H2 are expected to unlock additional advertiser budgets.

UBS sees a HK$10-15 per share valuation upside for Kling, citing Kuaishou's progress in advertising/e-commerce and reasonable valuation alongside AI's growth potential. The market appears to underestimate possible Q2 advertising acceleration, with upcoming earnings potentially serving as a positive catalyst.

Maintaining its "Buy" rating, UBS set a target price of HK$83.4.