CICC: Online platform sector doesn't need to be too pessimistic, recommends Tencent Holdings.

Zhongjin released a research report stating that the online platform sector has been relatively sluggish this year, consumer attributes are facing short-term pressure in the race track, and the market's AI narrative is further focusing on hardware and models. The sector's valuation has fallen back to below the historical 25th percentile. In the context of low valuation, the bank believes that there is no need to be overly pessimistic, and individual stocks with still bright fundamentals should be selected from the bottom up. The bank recommends Tencent Holdings, believing that it is a company with a low long-term failure rate and high success rate in the AI era. Currently, Tencent's valuation is close to the bottom of the past 5 years, with strong fundamentals in games, advertising, and signs of acceleration in AI deployment. Products such as WeChat Agent are expected to continue to advance, potentially driving valuation revaluation; it is suggested to pay attention to Kuaishou-W, Chizi City Technology, Huajiao, NetEase-S, and BOSS Zhipin-W.