Ruiyin said on October 15th that despite the short-term volatility of Chinese internet stocks, they will eventually return to fundamentals. Based on internet companies moving away from heavy investment phases and focusing more on shareholder returns, the PE ratio and EPS growth have become common valuation indicators for investors. The bank pointed out that the industry's PE growth rate is expected to be between 0.8 to 1.4 times from 2021 to 2024. Although industry stock prices have recently risen by 20%, there is still room for growth at the current 1.1 times PE growth rate. This is because the market has raised forecasts under government stimulus policies, reduced China's risk premium, and improved profit visibility due to easing industry competition. The bank expects valuations to rise until company profits catch up to previous levels. The bank raised the target price of some Chinese internet stocks by 11% to 49%, including raising Tencent's target price from HK $483 to HK $580, Alibaba's target price from $112 to $140, JD.com's target price from $43 to $64, Hello Group's target price from $7.48 to $8.3, all rated as 'buy'; Vipshop's target price raised from $12.5 to $17.5, kanzhun's target price raised from $16 to $18, IQiyi's target price raised from $2.4 to $2.72, all rated as 'neutral'. Stock selection by the bank is in the order of JD.com, Kuaishou, and Alibaba, followed by Tencent, Meituan, Ctrip, and Tal Education.