On September 29, Citi unveiled a report indicating that Kuaishou (01024.HK)'s subsidiary, Kling, announced on September 28 that its flagship model, Kling4.0, is set to roll out in October, accompanied by a limited-time trial of Kling4.0 Flash. Judging from the sample videos shared by Kling, the video effects of the 4.0 iteration are nearly on par with those of Seedance2.0 to 2.5. However, its true performance can only be gauged after its official debut. Citi highlighted two pivotal aspects: whether Kling4.0 can match the capabilities of Seedance2.0, which remains a popular choice among a vast user base, or even surpass it to reach the 2.5 level, and whether its pricing strategy can outshine that of Seedance2.0. The bank will keep a close eye on user reactions. As of now, Citi holds a 'Neutral' stance on Kuaishou, with a target price set at HK$41.
