Technology Sector 02 (Jun 16 - Dec 24)

[winston]

M Stanley Expects CN Dotcoms to be Curbed by Weak Macro in 2024; Top Pick PDD; NetEase, Tencent, New Oriental, Tencent Music, Baidu Favored

Morgan Stanley released a report, saying that Chinese technology and internet stocks, have slightly outperformed the broader mainland stock market this year, but the performance of individual stocks has been differentiated.

It believes that next year's performance will continue to be dominated by non-market risks due to weak macro factors.

The market is focusing on leading stocks with adaptable content, stocks with unique growth potential and artificial intelligence concepts.

Game and music content providers such as NetEase (NTES.US), TENCENT (00700.HK) and Tencent Music (TME.US) continue to show resilience.

Meanwhile, the broker is also placing focus on PDD (PDD.US), which has a unique growth opportunity in local and overseas markets, and education stocks New Oriental (EDU.US) and TAL (TAL.US).

AI adoption remained gradual, but the broker remained constructive on Baidu (BIDU.US).

Related News: Nomura Downgrades Bilibili (BILI.US) to Neutral, Cuts TP to US$13

All of the above stocks are recommended by Morgan Stanley and rated Overweight, with Pinduoduo as the top pick. Alibaba (BABA.US), MEITUAN-W (03690.HK), JD.com (JD.US) and Bilibili (BILI.US) are meanwhile rated Equalweight.

The broker forecasted e-commerce, local services and advertising, to grow by 7%, 22% and 11% respectively next year, while cloud business will see a modest recovery of 12%, and games and music will grow by 9% and 22% respectively.

China's dot-com industry is expected to see revenue growth of 10%, operating profit growth of 23% and a 40 bps improvement in return on equity to 17.5% next year.

Source: AAStocks Financial News

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

[winston]

Nomura: Fundamentals for CN Internet Sector Solid; Overseas Expansion to Drive Growth in 2024

Jialong Shi, Head of China Internet and New Media Research at Nomura, said that, even though most of the sectors in China were weak, including China's internet sector, which was affected by macro headwinds, the overall performance remained solid, especially in 3Q23.

Shi believed that its fundamentals gave confidence to investors, as evidenced by the large enterprises' healthy balance sheets, strong net cash flows, and efforts to control cost expenses.

Shi said that this year's e-commerce business is highly competitive. Taking MEITUAN-W (03690.HK) and Douyin as an example, their market competition continued from May until now.

Even though MEITUAN-W still manages to maintain its position, the introduction of more measures targeting at improving competitiveness put pressure on its gross profit margin.

Shi confessed that the market is still taking a wait-and-see attitude, waiting for the management's future deployment.

Shi said that a number of behemoths looked for opportunities to expand their business into overseas markets in recent years, such as the resilient development of PDD Holdings Inc. (PDD.US) , which is therefore expected to be a key factor in the industry's growth in 2024, as opposed to the AI effect that will take time to emerge.

Source; AAStocks Financial News

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

[behappyalways]

CES sneak peek! Robots and transparent TVs with “built-in AI” new products released

CES搶先看! 居家機器人.透明電視「內建AI」新品齊發｜方念華｜FOCUS全球新聞 20240109@tvbsfocus

https://m.youtube.com/watch?v=rSHN6GRCBKY

[behappyalways]

New AI products are released continuously! Walmart, Netflix are at the CES show

AI新品連發! 沃爾瑪.萊雅.Netflix 登CES大展｜方念華｜FOCUS全球新聞 20240110@tvbsfocus

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

[winston]

CHINA - JPM: 2024 Top Avoids Are Meituan, JD for CN Dotcoms; Sector Top Picks PDD, NetEase, Baidu

JP Morgan wrote in its report that the overall performance of Chinese dotcoms last year were eclipsed by the market's downgraded outlook.

Looking ahead to this year, the broker thought an alpha-driven investment strategy will continue to offer good risk/ reward.

This year's themes include the increased traction of China's cross-border e-commerce in the international market; monetization of generative AI; continued changes in China's e-commerce market mix; and a heightened focus on shareholder investment returns.

The broker assumed that Pinduoduo (PDD.US), Baidu (BIDU.US), KUAISHOU-W (01024.HK), NetEase (NTES.US) and TENCENT (00700.HK) will harness the above-mentioned trends, whereas Alibaba (BABA.US), JD.com (JD.US) and MEITUAN-W (03690.HK) will be negatively impacted.

JP Morgan's top industry picks this year are Pinduoduo (PDD.US), Tencent Music (TME.US), NetEase and Baidu, and the Top Avoids are MEITUAN-W and JD.com this year.

Source: AAStocks Financial News

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

[behappyalways]

These Are The 50 Top Power-Consuming Data-Center Markets In The World
https://www.zerohedge.com/technology/th ... kets-world

[behappyalways]

Massive layoffs in Silicon Valley within a month, AI wave, technology industry loses jobs first

一個月內矽谷大裁員 AI浪潮 科技業先失業 TVBS文茜的世界財經周報 20240121

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

[behappyalways]

Former Apple designer creates AI Pin that can replace smartphones

前蘋果設計師打造 AI Pin號稱可取代智慧手機｜FOCUS午間新聞 20240311 @tvbsfocus

https://m.youtube.com/watch?v=SUJks1zILl4

[behappyalways]

The trend of layoffs in the technology industry has not stopped, and AI has become the key driving factor behind

科技業裁員風潮未停歇 AI成背後推動關鍵因素｜FOCUS午間新聞 20240319 @tvbsfocus

https://m.youtube.com/watch?v=e0uSRXWkjio