DAHENG Jianguo International: Tencent (00700.HK) is believed to be the preferred choice in the industry, and is also bullish on Meituan (03690.HK) and Ctrip (09961.HK).
Industrial Bank International released a report stating that most of the covered Chinese Internet companies have reported better-than-expected second-quarter profits, although revenues only meet or fall below expectations. The only exception is Meituan (03690.HK), which has exceeded expectations in both revenue and profit. The bank observed that due to macroeconomic uncertainty and low consumer confidence, the revenue growth of most companies has slowed down. On the other hand, the continuous improvement of profit margin is driven by factors such as ongoing cost optimization and efficiency improvement, changes in revenue structure, and improved competitive landscape. Except for PDD Holdings (PDD.US), most companies also attach more importance to share buybacks and
China's technology stocks have fallen to a new low in valuation. They will benefit if there is an improvement in macroeconomic and consumer prospects.
Liang Xiangyi, Managing Director of Asia Telecommunications and Internet Research at Citic Lyon Securities, stated that the performance of China's technology industry in the first half of the year was good, with mid-term profits increasing by 37% year-on-year. Many companies' second-quarter performance exceeded market expectations. However, the average valuation of the technology sector as of the end of August was only 10.6 times, reaching a historical low.
Hong Kong stock concept tracks | Mid-Autumn travel service bookings significantly higher than Dragon Boat Festival. The prosperity of the travel sector continues to rise (with concept stocks).
As of now, the domestic hotel, domestic car rental, domestic ticket booking volume has all recorded double-digit growth compared to the same period in 2019; and compared to the Dragon Boat Festival holiday, the overall booking volume of the Mid-Autumn Festival holiday is also significantly larger.
Is the Mid-Autumn Festival tourism market not booming? The prices of airfare and hotels are the same as the off-season, and long-distance outbound tours during the National Day holiday are still popular.
From the perspective of OTA platforms and travel agencies, the prices of air tickets, hotels, and travel products during the Mid-Autumn Festival holiday this year are basically the same as usual. Long-haul outbound tours during the National Day holiday are still popular, with popular products from travel agencies such as Chunqiu Travel and utour group selling out.
Express News | Citigroup: Tencent is the preferred choice for Chinese internet stocks, and is also bullish on Meituan and Ctrip, etc.
Major bank rating | Citi: Chinese internet stocks bullish on Tencent, also optimistic about Meituan and Ctrip.
On September 3, Glodog issued a report stating that the profit growth rate of mainland internet stocks in the second quarter of this year exceeded the revenue growth rate. It is believed that the revenue for this quarter may fall below expectations due to macro challenges and companies' proactive reduction of subsidies to focus on quality returns. This in turn supports more companies to achieve stronger profit growth. Several companies significantly accelerated their buybacks in the second quarter, which helps to reassure investors of management commitments and support confidence in future growth prospects. The bank pointed out that Tencent is still the bank's top choice among domestic internet stocks in the second half of this year, and it is also bullish on Meituan and Ctrip's related service business. The bank is also optimistic about Manbang's growth potential.