Jinwu Financial News | Zhuhai International releases the 2025 outlook for the Internet Plus-Related Industry, where the introduction of substantial consumption promotion policies may be a key driving factor for the structural enhancement of the Sector's valuation. Before that, the Sector may maintain fluctuations, with Shareholder return levels, profit growth rate, and certainty serving as key supports for valuation.
The bank suggests focusing on three main lines: 1) The moats of mature Business and new development space may drive both performance and valuation growth: such as the gaming Sector benefiting from new game releases, local life which still has further online penetration space, advertising effects enhanced by AI technology, and GPU cloud business bringing new advertising and cloud increments; e-commerce, which has potential for increased monetization rate and may benefit from new consumption promotion policies; suggested focus on Tencent (00700), NetEase (09999), Alibaba (09988), and Meituan (03690);
2) The Sector where rapid profit growth is already largely anticipated, but valuation may have further repair potential bringing investment opportunities: such as OTA, Short Video, and Education; suggested focus on Ctrip (09961), Kuaishou (01024), New Oriental (09901);
3) The Sector expected to bring profit and valuation increments in the medium to long term, such as e-commerce and OTA.
