Beijing Kunlun Tech (300418 CH): Upgrade to Hold: Competitive short drama business

Research evidence excerpt

Beijing Kunlun Tech (300418 CH): Upgrade to Hold: Competitive short drama business

ressive promotion

will continue, given rapid platform growth and intensifying competition in the overseas 52-WEEK PRICE (CNY)

short-drama market, even though we raise our 2026-27 revenue estimates by 4.2% 69.00

and 5.6%. We introduce 2028 earnings estimates in this report. 48.00

Strong revenue growth momentum of Kunlun Tech’s short drama business. 27.00

06/25 12/25 06/26

Kunlun Tech’s overseas short-drama business continues to scale rapidly. Its flagship Target price: 40.50 High: 64.82 Low: 31.66 Current: 39.22

platform, DramaWave, ranked among the top five overseas short-drama apps by

Source: LSEG IBES, HSBC Qianhai Securities estimates

revenue in May 2026 (source: DataEye). The platform is expanding into AI-generated

animated and live-action dramas. The company expects AI-generated titles to account

Jing Han* (Reg. No. S1700518080001)

for an increasing share of DramaWave’s content supply in 2Q26, supporting lower Head of A-share Media & Internet Research

production costs and faster content iteration. Meanwhile, the ad-supported FreeReels HSBC Qianhai Securities Limited

jing01.han@hsbcqh.com.cn

platform has achieved rapid user growth across Southeast Asia and Latin America. +86 10 5795 2344

Its downloads have consistently ranked first among overseas free short-drama platforms Bruce Sun* (Reg. No. S1700522090001)

(source: company data). Supported by continued user expansion, AI-enabled content Analyst, A-share Media & Internet Research

HSBC Qianhai Securities Limited

production and diversified monetisation, we forecast Kunlun Tech’s short-drama bruce.z.j.sun@hsbcqh.com.cn

revenue to deliver a 33% CAGR over 2025-28. +86 10 5795 2357