China Merchants Securities International published a report saying that despite the recent weakening of the stock market as a whole, the stock prices of leading mainland internet platforms have shown resilience. It is believed that this is due to improved competitive environment and increased profit prospects. After this quarter's results, companies with large declines are still worth paying attention to, such as Pinduoduo, Tencent Music, and NetEase. These companies are still attractive in terms of business strength, market position, and valuation. The bank indicates that the overall market position and profitability of the leading Internet platforms in the mainland is still strong. The industry's top choices: Tencent, Alibaba, and Bilibili, all gave an “increase in holdings” rating, with target prices of HK$474, US$126 and US$21, respectively.

According to the bank, leading Internet platforms in the mainland, such as Alibaba, Tencent, and Meituan, maintained resilient results in the second quarter of this year, and stock prices fluctuated in a range. The bank's median valuation of companies covered by the bank continued to be historically low (price-earnings ratio of 9.8 times and 9.9 times for the 2024/2025 fiscal year). Although macroeconomic pressure has not abated, the continued introduction of supportive policies (such as trade-in of home appliances) and positive developments in individual stocks (such as the dual major listings of Ali and Cloud Music in Hong Kong) are still positive catalysts. The bank is optimistic about the industry and favors companies with the following characteristics: first, stable revenue growth, achieving stable or improved profit growth through efficiency improvements and loss reduction; second, providing high-visibility shareholder returns through cash dividends and share repurchases; and third, valuation support.