[HSBC Research: Recently, the market may be overly worried about the mainland's MaaS Token price war] On June 16, Jinshi Data reported that the performance of China's Internet sector has lagged behind this year, mainly due to investors' concerns about the following aspects, including the profit risk caused by the increase in AI spending and the subversion of AI agents; Continuous regulatory scrutiny, coupled with geopolitical uncertainty, particularly with more companies being listed by the United States as Chinese military enterprises; And weak consumer sentiment. The report indicates that although some factors will continue to exert pressure in the short term, there are still opportunities for stocks with immediate catalysts. In addition, large Chinese Internet stocks still have a P/E discount of 47% compared with their American counterparts, while Chinese AI concept stocks have a P/E discount of 40%. The bank believes that recent concerns about the token price war in MaaS may be excessive. The MaaS business is currently severely undervalued in Alibaba's (09988.HK) stock valuation, with a potential value of $13 per share based on June's annualized revenue of $1.5 billion and 21 times P/ARR. The expansion of cloud business gross profit margin and potential spin off of chip business also bring value gains. The bank pointed out that the external financing of Kwai (01024. HK) Kering might be an important catalyst. If calculated at US $500 million ARR and 21-30 times P/ARR, the potential value would be HK $22-32 per share.