Morgan Stanley issued a research report, lowering its EPS estimate for Kuaishou from 2024 to 2026 by 3% to 6%, mainly because of the weak macroeconomic environment in China, resulting in lower forecasts for Gross Merchandise Volume (GMV) and advertising revenue. The corresponding target price was also lowered from HKD 55 to HKD 50. The rating is "in line with the market". Morgan Stanley expects Kuaishou's 2Q revenue and adjusted net profit to be RMB 30.2 billion and RMB 4.4 billion, respectively, a year-on-year increase of 9% and 62%, in line with market expectations. For the third quarter, the bank lowered its forecasts for advertising and other revenues, with expected YoY growth rates of 17% and 16%, respectively, lower than market expectations. In addition, the National Development and Reform Commission has launched a plan to subsidize consumers who exchange their old appliances for new ones, covering eight categories of home appliances. Each consumer in each category can receive a subsidy for one item, up to 20% of the retail price. The bank estimates that Kuaishou can capture 10% to 15% of the GMV in these niche markets.