Western Securities released a research report stating that in the context of accelerated deployment of generative AI models and applications, Kuaishou-W is actively expanding its business capabilities based on multimodal large model technology, which may further promote the sustained growth of the company's core commercial revenue. Simultaneously, the company's continuous advancement in the technical implementation and commercialization of its generative AI applications is expected to bring new incremental growth opportunities.

The brokerage forecasts Kuaishou-W's operating revenue for 2026-2028 to be RMB 149.112 billion, RMB 159.852 billion, and RMB 167.856 billion, representing year-over-year growth rates of 4.4%, 7.2%, and 5.0%, respectively. It maintains a "Buy" rating on the stock.

Key points from Western Securities are as follows:

In 2025, the company achieved operating revenue of RMB 142.776 billion, a 13% year-over-year increase. Operating profit reached RMB 18.486 billion, up 41% year-over-year, while net profit attributable to shareholders was RMB 18.617 billion, marking a 21% year-over-year growth.

For the fourth quarter of 2025, operating revenue was RMB 39.568 billion, a 12% year-over-year increase. Operating profit for the quarter was RMB 5.337 billion, surging 53% year-over-year, and net profit attributable to shareholders was RMB 5.234 billion, up 32% year-over-year.

The company's core business revenue continues to increase, supported by steady user growth. In Q4 2025, Daily Active Users reached 408 million, a 1.7% year-over-year increase, with average daily time spent per DAU at 126 minutes. Monthly Active Users grew 0.7% year-over-year to 741 million. Gross Merchandise Value for e-commerce in Q4 2025 was RMB 521.8 billion, a 12.9% year-over-year increase, with active user repurchase frequency also rising year-over-year.

Online marketing services revenue for Q4 2025 reached RMB 23.6 billion, a 14.5% year-over-year increase. Leveraging AI technology, the company provides online marketing service solutions including AIGC marketing material production, intelligent bidding, and marketing recommendation large models, effectively enhancing clients' marketing conversion efficiency.

The Kling AI business is accelerating its commercial implementation. In December 2025, the company launched the unified multimodal video model Kling O1 and the Kling 2.6 model, which features synchronized audio and video generation. In February 2026, the company introduced the Kling 3.0 series of models, supporting comprehensive multimodal input and output.

Revenue from the Kling AI business in Q4 2025 was RMB 340 million. In January 2026, the annualized revenue run rate for Kling AI exceeded $300 million. According to a company voluntary announcement dated May 12, 2026, the board of directors is evaluating a proposed restructuring plan for Kling AI-related assets and business, which may involve introducing external financing.

Risk factors include: user growth falling short of expectations; slower-than-expected deployment and commercialization of new products; and macroeconomic conditions underperforming expectations.