Kuaishou Technology: Kling AI shines but core business growth decelerating going forward

研报英文原文证据摘录

Kuaishou Technology: Kling AI shines but core business growth decelerating going forward

Equity Research

China Technology

27 May 2026

Kuaishou Technology

Kling AI shines but core business

growth decelerating going forward Earnings Review

1Q results came in broadly in line with expectations. Outlook KUASF EQUAL WEIGHT

suggests core business growth to decelerate across the board Unchanged

going forward. Retain Equal Weight and lower price target to China Technology UnchangedPOSITIVE

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1Q results came in broadly in line on revenues and margins for its core businesses. Kling

revenue came in higher than expected at 650mn RMB with management commenting its ARR is

close to $500mn. But the outlook for its core segments appears to suggest deceleration in

growth in Q2. For example, in Q2, online marketing (ads) growth is likely to slow to 6-6.5% yoy

and ecommerce revenue may be flattish yoy. With the company making aggressive investments

in AI, gross margins are a bit lower than our expectations and opex a bit higher for Q2 and Source: IDC

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beyond. On the other hand, the strong growth in Kling is likely to continue and we now expect