Kuaishou Technology (1024.HK): Debating Kling vs. Seedance, Tax Risks, and 2026 Growth
Summaries are public. PDF access requires an active membership; all members have the same access. Sign in
Goldman Sachs analyzes the three central debates currently surrounding Kuaishou Technology: the competitive landscape between its Kling AI model and ByteDance's Seedance 2.0, potential tax overhangs for 2026, and the company's overall growth trajectory amid a sluggish consumer environment. The firm maintains a Buy rating on the stock with a twelve-month target price of HKD 87.00, offering 25.1% upside potential from the current price of HKD 69.55.
Regarding AI competition, Kling recently upgraded to version 3.0, matching Seedance features while introducing significant improvements in audio-visual consistency, maximum video clip length of 15 seconds, and storyboard design. Kling primarily targets enterprise and prosumer markets, positioning itself as a professional multimodal creation tool with controllable return on investment. Even if competitors gain traction, the overall AI video generation market is expected to expand tenfold over the next five years, reaching approximately $29 billion by 2030. Kling has experienced substantial user growth since late 2025, with January monthly revenue surging 30% to 50% month-on-month.
The report notes that while tax uncertainties pose a risk, the financial impact appears largely priced into the current stock valuation. Kuaishou now trades at under 12 times forward earnings, presenting a favorable risk-reward profile. Management's 2026 revenue projection for Kling stands at $280 million, which analysts believe carries meaningful upside risk if current user adoption and monetization trends persist.