Can Keling AI's Rapid Growth Reshape Kuaishou's Valuation Logic: In-Depth Analysis

According to the latest announcement from Kuaishou Technology,

[1][2]. This growth trajectory is nothing short of remarkable:

Time Node	ARR Milestone	Growth Cycle
March 2025 (10th month after launch)	Exceeded $100 million	-
December 2025	$240 million	140% growth in 9 months

As of December 2025, Keling AI’s global user base has exceeded

, with a cumulative total of over and more than [3]. In the global AI product ARR rankings, Keling AI ranks first among Chinese AI products ($149 million, October 2025 data), ahead of competitors such as PLAUD and Meitu Xiuxiu[4].

On the product front, Keling has launched the following since December:

• Keling O1
  : The world’s first unified multimodal video model
• Keling Model 2.6
  : Equipped with “simultaneous audio and video generation” capability
• New motion control and other features, maintaining rapid iteration

Indicator	Figure
Current Stock Price	HK$78.45
Market Capitalization	HK$335.4 billion
TTM P/E Ratio	16.91x
P/B Ratio	3.69x
ROE	25.40%
Net Profit Margin	12.53%
1-Year Price Increase	+102.19%

• Revenue: RMB42.46 billion (YoY +14.2%), exceeding expectations by 10.12%
• Adjusted Net Profit: RMB5 billion (YoY +26.3%)
• Daily Active Users (DAUs): A record 416 million

During the Q3 earnings conference call, the company stated that it expects

, while the December ARR figure ($240 million annualized) has significantly exceeded previous expectations[5].

Current technical indicators show:

• MACD
  : Bullish trend
• KDJ
  : Bullish signal (K:78.5, D:73.9, J:87.8)
• RSI
  : Overbought risk exists
• Trend Judgment
  : Sideways consolidation, trading range of HK$68.76-80.13
• Beta Coefficient
  : 1.08 (moves in sync with the broader market)

Kuaishou’s traditional revenue structure is highly reliant on

(advertising) and . Keling AI’s rapid growth has opened up a third growth curve for the company:

Business Segment	2025 Expected Characteristics
Online Marketing	Mature and stable, growth slowing
Live Stream Business	Structural pressure
Keling AI	Rapid growth, global expansion

According to management guidance, Keling AI’s revenue is expected to double in 2025, with outstanding performance in overseas markets[5]. This means the AI business’s proportion will gradually rise from a marginal contribution to a strategic revenue source.

Kuaishou’s current 16.91x P/E ratio mainly reflects the valuation logic of a

. As the proportion of AI business increases, the valuation system may evolve in the following directions:

• SaaS-Style Subscription Valuation
  : Rapid ARR growth allows for valuation using revenue multiples
• AI Application Platform Premium
  : AI tools with independent commercialization capabilities command higher valuations
• Globalization Premium
  : Keling’s expansion in overseas markets raises the growth ceiling

Referring to the analysis framework in Everbright Securities’ 2026 Hong Kong Stock Technology Investment Map[6], Kuaishou is clearly identified as an investment target with “leading video AI commercialization” and is categorized under the main theme of “revaluation of internet giant ecosystem value.”

Assuming Keling AI maintains high ARR growth in 2026:

Scenario	2026 ARR Forecast	Contribution to Total Revenue	Valuation Impact
Conservative	$400 million	~2.5%	Marginally positive
Base Case	$600 million	~3.5%	Increase P/E by 2-3x
Optimistic	$1 billion	~6%	Valuation system restructuring

According to the latest data[7]:

Index	Dynamic P/E Ratio	Valuation Percentile
Hang Seng Stock Connect China Technology Index	26.18x	60.4% of historical range
Nasdaq 100	36.20x	-
S&P 500 Information Technology	39.61x	-
ChiNext Index	42.36x	-

Hong Kong-listed tech stocks have significant

globally.

• 2025 Full-Year Southbound Capital
  : Cumulative net inflow of HK$1.404845 trillion, a new record[7]
• Foreign Capital ETF Inflows
  : In 2025, global ETFs investing in Chinese assets recorded net inflows of $83.1 billion, with the tech sector receiving the largest share ($9.5 billion)[7]
• Kuaishou has risen 25% year-to-date, with continuous buying by southbound capital[5]

The 2026 AI investment logic has shifted from “waiting for hit products” to “accelerated commercialization implementation”[4]:

• OpenAI expects its 2025 ARR to increase from $10 billion to $20 billion
• Anthropic’s ARR increased from $1 billion at the end of 2024 to $5 billion in July 2025
• Domestic Meitu’s paid penetration rate rose from 2.9% to 5.5%
• Keling’s Q2 revenue reached RMB250 million, with a sequential growth of over 60%
  [4]

Everbright Securities’ framework of “Four Main AI Thematic Lines”[6]:

1. Revaluation of Internet Giant Ecosystems
   : Tencent, Alibaba, Kuaishou
2. AI Computing Power Industry Chain
   : Optical modules, semiconductor manufacturing
3. AI Application Commercialization
   : SaaS, content ecosystems, advertising and marketing
4. AI Edge Computing and Robotics
   : Hardware upgrades and mass production inflection points

, with dual catalytic logic.

1. Intensified Competition
   : Giants such as ByteDance’s Jiemeng AI and Tencent are accelerating their layout in the video generation field
2. Commercialization Uncertainty
   : Whether high ARR growth can be continuously converted into net profit contributions
3. Technology Iteration Risk
   : Pressure from technological iterations of overseas competitors such as OpenAI Sora
4. Valuation Volatility
   : Short-term RSI indicates overbought risk, with pullback pressure[0]
5. Macroeconomic Uncertainty
   : Geopolitical risks and risks associated with overseas market expansion

:

1. Clear Short-Term Catalysts
   : Keling AI’s ARR has a sequential monthly growth rate of approximately 10%+, and its overseas breakthrough has triggered positive coverage from major investment banks[5]
2. Visible Mid-Term Growth
   : 2026 ARR is expected to exceed $400-600 million, becoming a strategic revenue source
3. Long-Term Valuation Restructuring
   : Shift from short-video platform valuation to AI content productivity platform valuation

For Hong Kong-listed tech stocks as a whole, the rising proportion of AI business brings threefold investment value:

• Valuation Recovery Space
  : Significant discount relative to U.S. tech stocks
• Accelerated Profit Growth
  : AI empowers advertising efficiency and new revenue sources
• Sustained Capital Inflows
  : Resonance between southbound and foreign capital

Kuaishou’s current stock price of HK$78.45 corresponds to a 16.91x P/E ratio, which is at a historically reasonable level. If Keling AI maintains its high growth trajectory, the 2026 valuation hub is expected to rise to the 20-25x PE range, corresponding to a target price range of

.

---

[0] Jinling API Data

[1] Sina Finance - “Keling AI’s December Revenue Exceeds $20 Million, ARR Surpasses $240 Million” (https://finance.sina.com.cn/tech/2026-01-13/doc-inhheqff7271718.shtml)

[2] Hong Kong Economic Times - “AI Battle | Kuaishou Technology’s Keling AI Generated Over $20 Million in Revenue in December Last Year” (https://inews.hket.com/article/4067805/)

[3] Kuaishou Investor Relations - “Keling AI’s Annual Recurring Revenue Reached $240 Million in December 2025” (https://ir.kuaishou.com/zh-hant/news-releases/)

[4] CITIC Securities - “2026 Investment Opportunities in AI Applications” (https://hao.cnyes.com/post/221404)

[5] Zhitong Finance - “Kuaishou Rises 25% Year-to-Date, Keling AI’s Overseas Breakthrough Triggers Positive Coverage from Major Investment Banks” (https://cn.investing.com/equities/kuaishou-technology)

[6] Everbright Securities - “2026 Hong Kong Stock Technology Investment Map: Four Main AI Lines from Computing Power to Terminals Lead Structural Market” (https://finance.sina.com.cn/stock/hkstock/hkgg/2025-12-24/doc-inhcwxmi9796881.shtml)

[7] Sina Finance - “Tech Gala Turns into AI Main Stage, Investment Logic for Hong Kong Tech Stocks Strengthened” (https://www.xincai.com/article/nhfswxu1566346)