＜Research＞CICC: KUAISHOU Iterates Again 'Kling' Foundation Model, but Logs Muted 618 E-commerce Growth

　　CICC noted in a report that KUAISHOU-W (01024.HK) +0.600 (+1.341%) Short selling $259.70M; Ratio 20.017% has recently demonstrated its self-developed foundation model product matrix at the World Artificial Intelligence Conference 2024, including its self-developed large language model “KwaiYii”, text-to-graph model “KeTu” and video generation model “Kling”. Among them, 'Kling' received the first update since its launch. The company also announced that it will release more commercialised products based on its foundation model capabilities.

　　According to CICC, KUAISHOU has an advantage in data and scenarios for AI applications, and with the iteration of its self-developed foundation model product capabilities, its AI-driven commercialised products will continue to enhance their usability and commercial utility.

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　　On the other hand, KUAISHOU announced that its pan-shelf and search GMVs during this year's 618 shopping festival (20 May to 30 June) grew by 75% and 110% YoY. CICC considered the overall performance to be muted and the growth rate may be slightly lower than previously expected, and forecasted that the core advertising and e-commerce business could achieve over 20% growth in revenue for the full year. In light of the 618 performance, the broker lowered its 2Q24 and 2024 full-year GMV growth forecasts to 20% and 22%, while maintaining its 2Q24, 2024 and 2025 earnings predictions.

　　CICC rated KUAISHOU Outperform but cut its target price by 12% to $66.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-05 16:25.)

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