Recently, Morgan Stanley said in its report that the China Development and Reform Commission has recently conducted in-depth research with relevant departments to understand the development of platform enterprises, the statement will further support the platform economy and the private sector, which is consistent with the bank's argument that "China's Internet industry has entered a relaxed regulatory cycle after the crackdown at the end of 2020."。

At the meeting, the China Development and Reform Commission and relevant departments mentioned that the platform economy is conducive to expanding demand, innovative development, stimulating the expansion of employment channels and the improvement of public services, and its position and role in the overall development of the country has become increasingly prominent.。And praised Alibaba, Tencent, Baidu, Meituan and other companies for their dedication to providing services, expanding diversified businesses and clear investment strategies, which have effectively promoted the country's scientific and technological progress and economic growth.。

According to industry insiders, the strict rectification of the platform that began at the end of last year has come to an end, and as of now, the platform has gradually established a standardized and transparent regulatory system, which is conducive to the expected stability and optimism.。At the same time, the perfect platform will also more actively guide and urge relevant enterprises to operate steadily in a legal and compliant manner, undertake the development of the real economy and the needs of people's livelihood, and give better play to the positive role of capital as a factor of production.。

Internet Industry Development Enemies Government Support

It has been seven months since China's economy fully reopened, but the country's huge Internet industry is still wrestling with issues such as a slow economic recovery, geopolitical tensions, weak investor sentiment and U.S. interest rate hikes.。It cannot be ignored that the stock prices of China's large Internet companies have fallen by an astonishing amount in the first half of this year.。To remedy this situation, regulators also stressed the role of platforms in promoting technological innovation, transforming traditional industries and enhancing the country's global competitiveness.。

In this regard, Morgan Stanley believes that this is undoubtedly a sign that the country will further increase its support for the platform and is committed to promoting the healthy development of the private sector.。And said that after three years of review and regulation of China's Internet industry, the industry should have entered a more standardized and relaxed regulatory environment, the platform economy is promising, Alibaba will be the main beneficiary of this relaxed regulatory cycle.。

In fact, the relaxed regulatory environment will not only enable the platforms to breathe freely, but also promote the transformation of traditional industries to a high-end and intelligent direction due to the technology, traffic and data advantages of the platform enterprises.。Therefore, the development of the Internet industry will also be strongly supported by traditional industries, and the development prospects of the platform will be great.。

Major Banks Expect Quite Tencent Baidu Revenue Expectations

In view of the relaxation of this development environment for Internet companies, major banks have adjusted their target prices for Internet companies.。

According to a research report released by Morgan Stanley, Tencent's revenue is expected to grow 12% year-on-year in the second quarter, with non-GAAP profit rising 20% to 440.3.8 billion yuan (RMB, the same below)。Based on Tencent's continued efforts to cut costs, active operating leverage will be more conducive to the company's profit growth in the coming quarters。The bank expects Tencent's gross margin to expand further and non-international financial reporting operating margin to increase by 2.1 percentage point to 29.4%, second quarter non-international financial reporting net profit or up 23% year-on-year to $34.5 billion。

It is reported that Tencent will carry out a strong offensive in different business lines。In the game business, in the context of international game growth, Morgan Stanley predicts that Tencent's business will grow by 7% year-on-year, and the company will launch more important games in July, such as "Fearless July," "Ark of Destiny" and "Dark Zone Breakthrough" international clothing, to promote the growth of the business in the second half of the year.。

In addition, in view of the rising demand for 618 festivals, the improvement of the macro environment and the realization of video accounts (VA), the bank also predicts that Tencent's advertising business will grow by 22% year-on-year, of which VA will remain the main catalyst for the growth of the business in the medium and long term, and the annual revenue of this part may reach about 13 billion yuan.。Tencent's fintech and corporate services (FBS) business may grow by about 17 percentage points from a year earlier, thanks to increased offline activity and a rebound in domestic travel。In summary, the bank maintained its revenue and earnings forecast for Tencent this year and next, with a target price of HK $450 and an "overweight" rating.。

Fu Rui also issued a research report that Baidu's core revenue in the second quarter or year-on-year growth of 12% to about 26 billion yuan, of which, the core online marketing revenue rose about 12% year-on-year, benefiting from the recovery of offline advertising.。As for AI cloud, the bank shrunk its original forecast of an 11% year-over-year rise to 7%, while enterprise cloud revenue recorded double-digit year-over-year growth in the quarter.。And according to the bank's expectations, Baidu's non-GAAP operating profit can reach 6.1 billion yuan, the standard operating rate is 23..5%。

Not only that, but for the third quarter, Furui expects Baidu's core revenue to grow 11 percentage points year-on-year to $28.1 billion, compared to a non-GAAP operating margin of about 21.4%, this data can reflect Baidu's product portfolio changes and its investment in Wenxin Yiyan.。Therefore, the bank gave Baidu Group-SW a target price of HK $207, maintaining a "buy" rating.。

Credit SuisseAccording to the report, Baidu's core earnings in the second quarter reached 7.5 billion yuan after operating adjustments, with 22% of its core profit margin unchanged from the same period last year.。Among them, the core search business will rise 12% year-on-year to 19.1 billion yuan, in line with market expectations;。The bank pointed out that Baidu's advertising recovery trend in June is not as good as in April and May, while some are still limited by high base suppression, the growth of the advertising market in the second half of the year may be less optimistic due to the weak macro environment;。For the AI chip ban, Baidu will prepare to mass produce its own self-developed chips to ensure the continuous supply of A800 chips.。

Based on these considerations, Credit Suisse lowered Baidu's adjusted earnings per share for this year and next to 3.5% and 2%, in response to the impact of the current uncertain macro environment on the advertising recovery, and its Hong Kong stock target price from HK $174 to HK $171, and said that if Baidu can expand the scale of ToB / ToC products, the long-term value of its artificial intelligence program will eventually be released, so maintain its rating as "outperform the market."。