Guanglinghui on October 15th | Morgan Stanley's report pointed out that the valuation of China's internet is still reasonable. As the supportive policies need time to translate into consumer and business confidence, it is believed that the potential upside for profit forecasts in the second half of this year to next year remains unclear even for certain cyclical sectors. Revenue growth forecasts for China's internet in 2025 remain unchanged, with the bank expecting a 7% increase in mainland e-commerce goods transaction volume (GMV), an 8% increase in advertising revenue, a 19% increase in total local service transaction volume (GTV), and a 12% increase in online travel agency (OTA) revenue. In terms of industry segmentation, the bank's preference order is social/gaming (Tencent), local services, OTA, e-commerce, vertical industries, social media/entertainment (excluding Tencent), gaming (excluding Tencent), and live streaming. The bank believes that Tencent's structural positives in gaming/social (accounting for 50% of revenue), macro optionality in advertising/fintech and enterprise services (FBS) (accounting for 50% of revenue), market share growth in various sectors, high profit visibility, and commitment to capital management, maintain Tencent as the industry's top pick, with a rating of "bullish". Next, the bank is bullish on Meituan and Ctrip, believing that in terms of consumer recovery, the structural positives for both companies, superior growth, and benign/improved competition warrant a "bullish" rating for both. The bank maintains ratings of "in line with the market" for Alibaba, Baidu, Netease, and Tencent Music.