Recently, Hong Kong and U.S. stocks, China Concept Technology and Internet stocks have continued to rebound. In terms of US stocks, the popular Chinese concept stocks rose by 13% in the past 3 trading days; in Hong Kong stocks, the Hang Seng Technology Index rose by more than 9% in 3 days, $Meituan-W(03690.HK)$ , $Alibaba-SW(09988 .HK)$ rebounded 75% and 35% from this year’s lows, respectively.
One of the biggest drivers for the recovery of these Chinese tech internet sectors comes from better-than-expected results. $ Kuaishou-W(01024.HK)$ This year’s Q1 losses continued to narrow, exceeding Bloomberg’s expectations. Alibaba, Baidu (BIDU.US)$ , and Pinduoduo (PDD.US)$ also beat Bloomberg’s estimates in revenue and earnings. After the announcement of the results, these individual stocks reacted violently. For example, Pinduoduo, which announced its results before the market last Friday, closed up more than 15% that day, and Baidu US stocks rose 16.6% two days after the results.
In terms of financial report highlights, Alibaba Cloud achieved annual profit for the first time; Pinduoduo’s e-commerce platform revenue and net profit margin exceeded market expectations; Baidu’s transformation achieved initial results, and the intelligent cloud and autonomous driving businesses continued to grow rapidly. Kuaishou’s revenue grew by 24% year-on-year, and losses continued to narrow.
Tianfeng Securities believes that the fundamentals of China’s technology Internet sector are likely to bottom in the second quarter, and the gradual confirmation of performance visibility will boost market confidence. With the subsequent improvement of the macro environment and the realization of the company’s high-quality growth strategy, the gradual resonance between the revenue growth rate and the improvement of operating leverage is expected to promote the elastic recovery of performance. At present, it has entered the medium and long-term configuration range of the plate, and it is recommended to continue to pay attention. In the follow-up, we will continue to pay attention to the control of local epidemics and the realization of corporate cost reduction and loss reduction strategies.
CITIC Construction Investment said that as the first quarterly report draws to a close, the market’s expectations for the Internet leader in the second quarter and the whole year are gradually revised, and the end of the second quarter results is imminent .
On the other hand, with the statement of the Politburo meeting at the end of April and the successful convening of the Internet Symposium in early May, the attitude of domestic industry supervision has changed significantly. In the future, domestic policy supervision will become normalized, which is conducive to the return of the Internet to its originality of innovation. Innovation is the driving force behind the development of the Internet. New model breakthroughs and technological breakthroughs will lead the new growth of the Internet industry in the next stage .
editor/lydia, somer
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