

Core Viewpoint - Morgan Stanley reaffirms Kuaishou as the preferred stock in China's digital entertainment sector, believing that investors have underestimated its accelerating core advertising growth and the positive impact of AI on advertising [1] Summary by Relevant Categories - Target Price Adjustment - The target price for Kuaishou has been raised from HKD 71 to HKD 88, reflecting an optimistic outlook on the acceleration of core advertising business growth and the strong growth momentum of AI [1] - Upcoming Earnings Catalyst - The upcoming second-quarter earnings report is expected to serve as the next catalyst, with anticipation that management will provide positive guidance on the outlook for core advertising and the development of AI [1] - Investment Rating - The rating for Kuaishou is maintained at "Overweight" [1]