KUAISHOU-W (01024) shares surged 5.02% in intraday trading on Tuesday, following a bullish research report from Guosen Securities that maintained an "Outperform" rating on the stock. The report highlighted Kuaishou's strong financial position, promising AI business development, and improvements in its core advertising operations.

Guosen Securities projected adjusted profits of 20.2, 23.8, and 28.1 billion yuan for Kuaishou's fiscal years 2025-2027, representing a compound annual growth rate (CAGR) of 15%. The firm also noted Kuaishou's first special dividend distribution of HK$0.46 per share in Q2 2025, totaling HK$2 billion. As of June 2025, Kuaishou's total available funds reached an impressive 101.9 billion yuan, with net cash (excluding borrowings) amounting to 89.7 billion yuan, providing a solid foundation for future AI business development and shareholder returns.

The report emphasized Kuaishou's growing strength in the AI sector, particularly with its Kling AI product. Kling AI has established itself as a comprehensive AI productivity engine, serving over 45 million creators globally and generating significant revenue, with over 70% coming from overseas markets. The success of Kling AI, combined with improvements in Kuaishou's core advertising business through AI-driven efficiencies, appears to be driving investor optimism. Analysts are closely monitoring AI optimization efforts, especially algorithm improvements for core advertising businesses, as well as Kling revenue growth and global AIGC development trends.