Zhao Yin International released a research report stating that the preference for the Internet Plus-Related sub-industry is local life services → advertising → gaming = value-added services → e-commerce → cloud → live broadcasting. The top picks are MEITUAN-W (03690), TENCENT (00700), Tencent Music (TME.US), and Alibaba (BABA.US).

The report indicates that leading platform Internet companies still maintain business resilience, benefiting from continuous cost reduction and efficiency improvements, healthy profit growth, and stable shareholder returns. The current industry valuation is at a trough, strong in defensiveness, with potential profit upside factors next year coming from macro policy stimulus, overseas expansion opportunities, and AI business progress.

The bank indicates that the performance of leading Internet platforms in the third quarter remains resilient, with average revenue growth of 12% year-on-year and core net income growth of 28% year-on-year, benefiting from efficiency improvements, with most companies continuing to achieve better-than-expected profit growth. By business segment, it was noted that key companies' local life services and advertising businesses achieved 10 to 20% year-on-year growth in the third quarter, e-commerce, games, and cloud businesses achieved mid to high single-digit year-on-year growth, while the live streaming business still shows a trend of year-on-year decline.