BOC International: Currently, most companies have valuations below the 2024 average and are optimistic about Alibaba-W (09988), etc.

The Zhitong Finance App learned that BOC International released a research report saying that due to overseas uncertainties, the current valuation of most companies is lower than the 2024 average. The bank is optimistic about companies with stable performance and AI support to drive up valuation opportunities, such as Alibaba-W (09988), Tencent Holdings (00700), NetEase (09999), Ctrip Group-S (09961), and Meituan-W (03690).

This month, China and Internet companies will announce first-quarter results one after another. As e-commerce benefits from increased state subsidies and demand, the bank expects its total product turnover (GMV) growth rate to increase 6% year on year. Among them, Alibaba expects a 6% growth rate, JD Group-SW (09618) growth rate of 10%, Pinduoduo's growth rate of 13%, and Kuaishou-W (01024) growth rate of 15%.

The performance growth of online travel platforms such as Ctrip Group and Tongcheng Travel (00780) is in line with expectations, with revenue growth rates expected to reach 17% and 12%, respectively. The takeout industry will reflect short-term subsidy fluctuations due to the entry of JD's instant retail sales, and JD's performance will be reflected in the second quarter. The bank expects the takeaway industry pattern to remain stable, with Meituan's revenue growth rate reaching 16% in the first quarter.

In terms of games, the January-April mobile game sales were generally in line with expectations, and Tencent Evergreen Games performed steadily. The bank recommended focusing on the new game “Goddess of Victory: A New Hope”, which was in public beta on May 22. In the entertainment industry, the supply of iQiyi's long-form dramas is recovering. It is recommended to focus on the commercialization contribution of short dramas and the drag on profits of increased investment.