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<Research>CCBI Says TENCENT Is Conviction Top Pick, Also Likes MEITUAN-W, TRIP.COM-S
Recommend 38 Positive 69 Negative 24 |
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According to a recent CCBI report, most of the Chinese internet companies under its coverage logged better-than-expected 2Q earnings despite in-line revenue or, in certain cases, revenue below expectations. The only exception was MEITUAN-W (03690.HK), whose revenue and earnings both surpassed expectations. In addition, most companies, with the exception of PDD (PDD.US), are also placing greater emphasis on returning value to shareholders through stock buybacks and/or dividends. The broker expects the trend of enhanced profitability to continue for the remainder of 2024, enabling internet companies to keep rewarding shareholders. Given TENCENT (00700.HK)'s solid fundamentals, sustainable profit growth, and the immense monetization potential of the WeChat ecosystem, the broker selected TENCENT as its conviction top pick. CCBI is also upbeat about MEITUAN-W and TRIP.COM-S (09961.HK), which benefit from structural trends in service consumption. While e-commerce will remain the most competitive sub-sector, BABA-W (09988.HK) presents a trading opportunity due to its attractive valuation and potential capital inflows from its inclusion in the Southbound Stock Connect from September 10. AAStocks Financial News |
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