Technology Sector 02 (Jun 16 - Dec 25)

[winston]

China Renaissance Securities: Internet Industry Competition Environment Improves, Stabilizes

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.

Related News: Jefferies: JD Logs New High in GMV/Order No. During 618; BABA Merchant Performance Benefits From AI & Customer Experience Betterment

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.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

Technology – Malaysia
Room For Further Sector Growth

Despite the sector’s outperformance ytd, we see room to grow, backed by an early cycle of recovery, stronger earnings momentum, ample trade diversion opportunities and supply chain entrenchment.

Additional impetus will come from the government’s supportive measures to anchor the much-needed resources for further value chain advantages.

We like companies with strong orderbook backlogs and are frontrunners with structural growth themes.

Maintain OVERWEIGHT.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[behappyalways]

Visualizing The Top 10 Emerging Technologies In 2024
https://www.zerohedge.com/technology/vi ... ogies-2024

[behappyalways]

Big Tech Uses More Electricity Than Entire Countries
https://www.zerohedge.com/energy/big-te ... -countries

[behappyalways]

Europe’s largest electronics show!
New AI home appliances released,
“Are they practical?” sparks heated debate

歐洲最大電子展! AI家電新品齊發 「實用嗎?」引熱議｜方念華｜FOCUS全球新聞 20240905 ‪@tvbsfocus‬

https://m.youtube.com/watch?v=Hae6Ft4pcY8

[winston]

CITIC CLSA: China Techs See Valuations Plummet to New Low, but Will Benefit if Macro & Consumption Outlooks Improve

China's technology sector performed well in 1H24, with interim profits lifting 37% YoY and many companies' 2Q24 results exceeding the market's expectations.

However, the average valuation of the technology sector as of the end of August stood at a record low of only 10.6x.

She expected China's technology companies to continue to deliver solid results, and at the current low valuations, they are the first choice for value investment.

Overseas institutional investors have previously reduced their holdings, mainly due to their bearish outlook on China's macro-economy and consumer market. It is believed that with continued support from the authorities, capital will flow back into the technology sector when the economy rebounds and consumption picks up.

Considering that China's weak macro outlook remained the main potential negative factor, CLSA is more bullish on defensive areas in the technology sector that will benefit from domestic demand growth, including gaming, travel and low-cost e-commerce.

Top picks include TENCENT (00700.HK), TRIP.COM-S (09961.HK), XIAOMI-W (01810.HK) , PDD (PDD.US), MEITUAN-W (03690.HK) and BABA-W (09988.HK).

In the gaming industry, the broker preferred TENCENT to NTES-S (09999.HK). Leung predicted that TENCENT's online game business could post double-digit revenue growth in 2H24, driven by focus games such as Dungeon & Fighter, with international game business growing even faster.

As for low-cost e-commerce players, she noted that PDD and BABA have been outperforming JD-SW (09618.HK) and KUAISHOU-W (01024.HK) .

Looking ahead, Leung believed domestic demand and overseas travellers visiting China would continue to support growth at online travel agencies (OTAs).

In addition, given the size of the China market, she predicted Xiaomi Automobile's sales could hike to 1 million cars in 5 years at the earliest, which is faster than Tesla's 6 years to boost sales from 100,000 to 1 million units.

She also pointed out that XIAOMI already has a sales network in many countries and regions around the world, which she believed could help it develop overseas car sales in the future, with Xiaomi Automobile estimated to turn around from loss to profit by 2027.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

IT Hardware – China

Maintain Preference For The More Defensive AI-device Plays As Uncertainty Remains High

1H24 results are mixed.

AI infrastructure-related businesses remain robust, with solid guidance for 2H24-25, but the market’s high expectations, mounting geopolitical tensions and a lack of long-term visibility have capped upside in the near term.

As such, we continue to prefer AI-device names as we expect more meaningful developments in the edge-AI ecosystem throughout 2H24 thanks to new hardware and OS launches.

Maintain OVERWEIGHT. Top picks: Xiaomi and Lenovo.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[behappyalways]

The European Court of Justice ordered Apple to pay 13 billion euros in back taxes and fined Google 2.4 billion for monopoly.

歐洲法院判 蘋果補稅130億歐元 谷歌壟斷罰24億｜方念華｜FOCUS全球新聞 20240911 ‪@tvbsfocus‬

https://m.youtube.com/watch?v=-iOkReOuT5g

[behappyalways]

Textbooks are back.
Laptops are out!
Finnish schools reject technology from classrooms

課本回歸.筆電OUT! 芬蘭學校拒科技入教室｜方念華｜FOCUS全球新聞 20240911 ‪@tvbsfocus‬

https://m.youtube.com/watch?v=a_4L9up7Od0

[behappyalways]

How Thermal Batteries Could Replace Lithium-Ion Batteries
https://m.youtube.com/watch?v=mXPMXVLs3-Q