Daiwa Capital Markets issued a research report, stating it has reassessed the valuation basis for KUAISHOU-W's (01024) core business and its Kling AI unit. The firm decided to reaffirm its "Buy" rating on KUAISHOU-W and raised its 12-month target price from HK$63 to HK$72. KUAISHOU-W has repurchased shares worth HK$854 million year-to-date, and its total yield is projected to double from approximately 2% in 2025 by 2026.

Daiwa noted that KUAISHOU-W's Q1 2026 results were largely in line with market expectations, with operating revenue increasing 3.4% year-over-year to RMB 33.716 billion. The report highlighted that "Kling AI" once again exceeded market expectations, recording Q1 revenue of RMB 650 million (a year-over-year increase exceeding 300%), with an Annualized Run Rate (ARR) reaching $500 million as of March. Furthermore, media reports in May suggested that Kling AI's ARR is projected to reach $1.3 billion by Q1 2027, and the company is reportedly planning a potential spin-off listing with a valuation of $20 billion. This further underscores Kling AI's clear path towards accelerated commercialization. Daiwa currently estimates that, under a sum-of-the-parts (SOTP) valuation, Kling AI could contribute approximately 50% of the group's valuation, marking a structural shift in the investment narrative.