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China Renaissance Securities: Internet Industry Competition Environment Improves, Stabilizes
Recommend 20 Positive 34 Negative 14 |
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According to a research report by the team at China Renaissance Securities (U.S./ Hong Kong), it observed that the healthy growth of the digital entertainment industry prompted margins to continue to improve, with platforms achieving a win-win outcome by providing users with live stream e-commerce and personalized advertising services to satisfy their needs. Among the platforms, KUAISHOU-W (01024.HK) increased user stickiness by enriching product supply, matching with precise algorithms and expanding shopping scenarios. Its e-commerce GMV surged 28% YoY in 1Q. Its adjusted net profit margin gained 14.7 ppts YoY. In addition, BILIBILI-W (09626.HK) also participated in the survey. The company's management was bullish on its advertisement business, especially in the e-commerce and entertainment sectors. In 1Q, BILIBILI-W realized a 31% YoY hike in advertisement revenue. The report mentioned that China's economic recovery was particularly evident in the logistics industry. With the emergence of new retail models such as live e-commerce and changes in consumer habits, China's courier logistics displayed a trend of lightweight, driving a 21.7% YoY rise in courier logistics business volume in 4M24. JD LOGISTICS (02618.HK) even made a profit in 1Q for the first time. Its management envisioned the company's business to continue to grow steadily this year, especially in terms of profitability. After sorting out its customers over the past two years, as well as reducing costs and increasing efficiency, the management was confident that it can further improve its gross and net profit margins this year. In a nutshell, the competitive environment in the industry improved and stabilized, and inefficient subsidies reduced drastically, with many companies achieving positive YoY margin improvement in 1Q. At the same time, many companies placed greater emphasis on shareholder returns by actively launching buyback or dividend programs. AAStocks Financial News |
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