KUAISHOU surged 12%! Keling went global, and Motion Control gameplay went viral

Kuaishou Technology's commercialization potential in the field of generative AI is accelerating. With its AI video generation model Kling experiencing explosive dissemination in overseas markets, combined with the technological empowerment of its core advertising business, the company is reshaping its growth logic. Driven by this, Kuaishou's Hong Kong stock surged during trading, with an increase of over 12% at one point.

Benefiting from the widespread dissemination of the "Motion Control" feature on overseas social media platforms in countries like South Korea and Russia, as well as promotional activities for members, Kling's daily revenue reached 2.5 times the average level in mid-December 2025 on January 3, 2026.

The model's version 2.6, launched on December 3, 2025, has breakthrough functionality that allows for the simultaneous generation of natural language, action sound effects, and ambient sounds in a 10-second video. This upgrade not only reconstructs the AI video creation process but also significantly enhances users' willingness to pay. Institutions expect Kling's revenue to exceed $140 million in 2025, and to maintain growth in 2026 through version iterations and expansion into B-end markets.

In addition to breakthroughs in its independent AI business, the efficiency-enhancing effect of AI technology on Kuaishou's main business is also becoming increasingly significant. Thanks to the application of models like OneRec and GFRL in commercial scenarios, Kuaishou has optimized its ad load rate and effectively improved its eCPM (effective cost per thousand impressions). This has driven steady growth in user engagement and advertising revenue, providing solid support for the company's profit outlook.

Kling's Revenue Margins Accelerate, Overseas Markets Become Growth Engine

Kling's recent performance in overseas markets has validated its product's dissemination attributes and commercial value. According to a quick report released by Everbright Securities, during the New Year period, the "Motion Control" feature became a popular trend on social media. A large number of users from countries like South Korea and Russia shared dance videos created with Kling, and this viral dissemination directly drove a surge in revenue.

Data shows that under the dual stimulation of member promotions and version updates, Kling's revenue began to show significant month-on-month growth starting in mid-December 2025. By January 3, 2026, daily revenue had soared to 2.5 times the average daily value in mid-December. This trend of accelerating margins indicates that Kling has successfully established a closed loop from traffic acquisition to commercial monetization.

Institutional analysis suggests that Kling's revenue scale is expected to continue expanding. It is anticipated that the business will exceed $140 million in revenue in 2025. Looking ahead to 2026, with continuous iterations of version features and expansion into B-end users, Kling is expected to achieve an independent valuation premium, becoming a new variable in Kuaishou's valuation system

Technical Reconstruction Workflow, Model 2.6 Achieves "Sound and Image from the Same Source"

The enhancement of Kuaishou's product capabilities is the core driver of growth. On December 3, 2025, Kuaishou launched the video generation model 2.6, specifically addressing the pain point of traditional AI video generation, which involves "silent images first, followed by manual voiceover." The new model features two core functions: "text-to-sound-image" and "image-to-sound-image," capable of outputting a complete video of up to 10 seconds in a single generation, including Chinese or English voice, action sound effects, and ambient sounds.

While AI business develops independently, Kuaishou is also leveraging AI technology to comprehensively transform its core advertising business. Data from the third quarter of 2025 shows that the application of AI technology has increased user engagement by 1-2 percentage points and driven advertising revenue growth by 4-5 percentage points.

Specifically, the improvement in Ad Load is mainly attributed to the application of OneRec technology in the commercialization field. By optimizing the accuracy of content and user matching, Kuaishou has increased advertising inventory while reducing user disruption. In terms of eCPM, the application of the GFRL model has achieved round-the-clock AI pricing and intelligent selection of ad placements, accurately monitoring return on investment (ROI) and budget usage, thereby enhancing the efficiency of ad monetization.

Performance Outlook and Valuation Logic

Based on the explosive growth of the AI business and the steady growth of its main business, the market holds an optimistic view on Kuaishou's profit prospects. Everbright Securities expects Kuaishou's profits to reach RMB 20.6 billion and RMB 23.8 billion in 2025 and 2026, respectively, with year-on-year growth of 16% and 15%. The current stock price corresponds to price-to-earnings ratios (PE) of 14 times and 12 times, respectively.

Future investment logic will mainly revolve around two catalysts: first, the continuous empowering effect of AI technology on Kuaishou's main advertising business; second, the high-frequency data performance of Keling's business and the rhythm of its product updates and iterations. As the commercialization path of AI becomes clearer, Kuaishou's valuation system is expected to undergo a reshaping