Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>UBS: Top Pick Meituan for CN Dotcoms; Preference Order: Alibaba, Trip.com, Tencent, New Oriental Education
Recommend 43 Positive 65 Negative 30 |
||||
|
||||
|
UBS published a report on Chinese internet sector. It cited investors’ five common questions after the relevant companies announced their results for 2Q24. The first was the sustainability of margin improvement; the second was the impact of Pinduoduo (PDD.US)’s cautious comments on the industry; the third was the positioning of BABA-W (09988.HK) after it was included in the Southbound Stock Connect; the fourth was the main risk besides the macro economy; and the fifth was the bright spots, in addition to the mitigation of competition, the better performance of online e-commerce relative to offline e-commerce. The market is debating key stocks and potential catalysts. Despite the macro weakness of China, there is a long-term consensus on the earnings resilience of TENCENT (00700.HK). The main debate is about rising valuations and a high base in 2025. Investors also liked MEITUAN-W (03690.HK)'s high growth in local services. In UBS view, Chinese dotcoms saw bottom-up drivers, earnings visibility and undemanding valuations. The broker's order of preference was: 1) MEITUAN-W (03690.HK) (profitability resilience and visibility and potential for a 2025 re-rating); 2) Alibaba (BABA.US) (accelerated monetization of Taobao and Tmall Group and narrowed losses in non-Taobao and Tmall Group businesses); 3) Trip.com (structural drivers from resilient travel demand and strong international growth); 4) TENCENT; and 5) New Oriental Education (EDU.US). AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
