According to a report by CICC, Alphabet's Q2 revenue was $84.7 billion, which basically met the bank's and the market's expectations, with a year-on-year growth of 13.6%. Google's search advertising business and cloud business revenue exceeded expectations; Net income was $23.6 billion, 1% higher than the bank's expectations and 2.8% higher than the market's expectations, with a year-on-year growth of 29%, mainly due to effective cost control.

The bank basically maintains its revenue forecast for Alphabet for the next two years, and raises its net profit forecast by 1.9% and 2.8% respectively to $96.8 billion and $107.8 billion based on strict cost control and cost reduction. The bank raised its target price by 4% to $200, maintaining an 'outperform' rating, corresponding to a forecast P/E ratio of 26 times and 23 times for the next two years, with an upward space of 10%. The current transaction is equivalent to a forecast P/E ratio of 24 and 21 for the next two years.