On February 12, Goldman Sachs released a research report reiterating its "Buy" rating on Kuaishou-W (01024) and setting a 12-month target price of HK$87, implying approximately 25% upside from the current share price. The report focused on the competitive landscape between Kuaishou's video generation model, Kling, and ByteDance's Seedance 2.0. With the release of Kling 3.0, Goldman Sachs noted significant improvements in its multimodal generation, visual consistency, shot control, and multilingual audio generation capabilities, positioning its overall technical level within the global top tier. While some market feedback suggests Seedance 2.0 excels in physical motion performance and complex action handling, Goldman Sachs pointed out that Kling AI remains competitive in visual consistency, adaptability to commercial scenarios, and professional creation capabilities, particularly holding a differentiated advantage in the enterprise and professional user markets. Goldman Sachs believes the AI video generation industry is still in a phase of rapid expansion and is unlikely to be dominated by a single platform. With continuous model upgrades and expanding application scenarios, the global AI video generation market size is projected to grow approximately tenfold over the next five years, reaching around $290 billion by 2030. In this expanding market, multiple leading models are expected to benefit collectively. Regarding commercialization progress, Goldman Sachs cited third-party data indicating that Kling AI has seen a notable acceleration in overseas users and revenue since December of last year, a trend expected to continue this year. The firm forecasts Kling AI revenue to reach approximately $280 million in 2026, representing year-on-year growth of over 90%. On valuation, Goldman Sachs calculated that the current share price implies a valuation of about $5 billion for Kling. The report suggests this valuation does not fully reflect its growth potential. It was noted that following recent share price adjustments, Kuaishou's valuation has entered a relatively reasonable range, yet the long-term growth prospects of its AI business are not fully priced in, supporting the maintained "Buy" rating.