UOB Kay Hian: Chinese Policies to Boost Internet Valuation, Top Picks: Tencent, Trip.com, Meituan
UOB Kay Hian believes that China's strong policy implementation will improve consumer sentiment, benefiting e-commerce, local lifestyle services, and online travel companies. They predict that by 2H24, internet company valuations will improve through shareholder returns, cross-border expansion, and reduced competition.
Key drivers include AI-generated content (AIGC) and advancements in advertising tech for monetization.
The broker highlights that China’s e-commerce giants ( $BABA-W (09988.HK)$ , $JD-SW (09618.HK)$ , $PDD Holdings (PDD.US)$ , $KUAISHOU-W (01024.HK)$ ) are undervalued compared to Amazon, with their combined market cap at $566 billion versus $Amazon (AMZN.US)$ ’s $2 trillion.
The upcoming Double 11 shopping festival, along with government-backed initiatives, is expected to further boost consumption.
Top internet sector picks:
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
InfiltradeR : No prediction is needed from UOB. If we take a look at past historical trend when China launched a series of stimulus to aid the economy, we'll have the answers.