1) It can not be built waterline. It comes in upper and lower hull halves, split along the centerline, not the actual waterline.
2) It is a less accurate kit than the Trumpeter/Hobby Boss 1/700 Typhoon. The stern dive planes of the Cyberhobby kit are incorrect/"imaginary." They do not reflect the layout of the actual sub. (The Hobby Boss/Trumpeter kit does do that layout correctly.)
I do not own the 1/700 Hobby Boss/Trumpeter Typhoon kit, but I have looked its contents up online. Unfortunately, for most full hulled submarine kits, when they are listed as "waterline," it just means the kit comes in upper and lower halves, split down the center, not the actual waterline, as is the case I can see from the review I have of the kit you ask about. Very true that is not the actual waterline. Unfortunately--as it is close--it is very common to claim subs spilt this way have a "waterline" version available. (I have a few modern 1/700 US/Russian subs in my collection by both Dragon and Hobby Boss.)
While I know of a true waterline 1/700 Oscar class (Kursk) from Tamiya, I don't know of any waterline Typhoon kits available. Sorry.