What does the spin-off of Kelin mean for Kuaishou?

Kuaishou's AI video generation tool, Kelin, is seeking independent financing—a development that has prompted the market to reassess Kuaishou’s valuation logic. According to a report by LatePost on May 11, Kuaishou is planning to initiate an equity financing round for Kelin AI at a valuation of $20 billion and is currently in discussions with investors, including Tencent. On the same day, Kuaishou issued an announcement confirming that the board of directors is evaluating plans to restructure assets and operations related to Kelin AI, potentially involving the introduction of external financing. However, it emphasized that the process is still in its preliminary stages and no final agreements have been signed. Following the news, JPMorgan analyst Chen Qi released a quick commentary report on May 12 to verify the developments.

wallstreetcnMay 13 10:22

Major bank ratings | JPMorgan: If Keeling AI reaches a valuation of $52 billion, Kuaishou's target price could reach HK$73.

Gelonghui, May 13 | JPMorgan issued a report stating that the potential spin-off listing or independent financing of Keling AI could become a catalyst for the revaluation of Kuaishou, creating upside potential for the stock price. According to a SOTP analysis, if Keling AI achieves a valuation of $52 billion, assuming a Q1 2027 ARR of $1.3 billion and applying a 40x ARR multiple, Kuaishou's target price could reach HKD 73. The firm currently maintains a 'Neutral' rating on Kuaishou, pending further disclosure on the progress of Keling AI's spin-off.

Gelonghui FinanceMay 13 11:20 · Ratings

Kuaishou Technology Stock Slides 1.9% in Hong Kong

Dow JonesMay 13 16:32

Hong Kong Stock Market Review: Hang Seng Index rose by 0.15%, storage chips and AI applications rebounded strongly, while most financial stocks remained sluggish.

The Hong Kong stock market continued its narrow range-bound trading pattern, with intensified sector rotation and frequent shifts of capital between defensive and growth-oriented stocks. At the close of trading, the Hang Seng Index rose by 0.15% to 26,388 points, while the Hang Seng Tech Index declined by 0.07%, and another tech index climbed by 0.46%. On the market specifically, large technology stocks showed significant divergence in performance. Baidu surged over 8% following its earnings report, standing out prominently, Meituan advanced more than 4%, Tencent and Xiaomi gained over 1%, while Kuaishou fell by 1.9%, and Baidu dropped by 1.57%. Alibaba ended in negative territory. SK Hynix, referred to by Gelonghui as one of the 'Korean twin sisters,' staged a deep V-shaped rebound, surging 7.5% to hit another all-time high, driving storage semiconductor stocks higher in the afternoon session.

Gelonghui FinanceMay 13 16:17

Market Snapshot | Mixed performance across the three major indices, with the Technology Index up 0.46%; storage concept remains strong, with Montage Technology surging over 21% to a new high; AI application concept gains momentum in the afternoon, with Zh

The three major indices showed mixed performance, with the technology index rising by 0.46%; the storage concept remained strong, with Montage Technology surging over 21% to reach a new high; the AI application concept gained momentum in the afternoon, with Zhipu skyrocketing nearly 37%, and MINIMAX surging over 18%; JD.com's shares rose more than 8% after its earnings report.

Futu NewsMay 13 16:16

Hong Kong Stock Ratings Summary: Qunyi Securities maintains a Buy rating for Hengrui Pharma.

Cailian Press will regularly compile ratings and target prices from various institutions for Hong Kong stocks.

cls.cnMay 13 15:09