UBS Group's China internet research director Fang Jincang stated that participants in the mainland internet industry have been relatively optimistic about the industry's outlook in recent weeks. He explained that although macro policies continue to be implemented, it will take some time for consumer confidence to recover, but various departments at the central level are coordinating to stimulate the mainland economy.

Fang Jincang mentioned that in September, mainland retail sales (especially in the household appliances sector) showed significant growth, mainly benefiting from mainland policies such as 'trade-in old for new', the appreciation of the Japanese yen promoting domestic consumption in China, and shopping mall promotional activities.

Fang Jincang expects that the earnings per share growth of the mainland internet industry in the next two to three years will range from about 16% to 17%. He also pointed out that the current price-earnings to growth ratio (PEG) of the mainland internet industry is 1.1 times, with an estimated chance of rising to 1.3 times in the future.

Additionally, Fang Jincang noted that competition among mainland internet companies has stabilized in recent years, with some internet companies starting to cooperate with each other, even achieving data 'interconnection', all of which will provide significant room for improvement in company revenue and profit margins. However, cross-border 'going global' e-commerce is still in its early stages of development, so overseas competition is expected to remain quite fierce.

Fang Jincang advised investors to pay attention to platform-based companies that are more sensitive to economic stimulus policies, have cheaper valuations, and show improved profit and cash generation at lower levels, such as e-commerce, local lifestyle, advertising, and other industries.