Goldman Sachs regards e-commerce stocks as the most preferred sector in the mainland internet industry, on par with game stocks. Based on stronger-than-expected growth and accommodative policies in mainland China, the e-commerce market was sturdy with a roughly stable market share, and the PE of BABA-W (09988.HK) (BABA.US), Pinduoduo (PDD.US) and JD.com (JD.US) (09618.HK) are just 9-12x. The combined market value of the three was just US$500 billion, vs Amazon (AMZN.US)’s US$2.1 trillion market cap.

Chinese e-commerce companies, as the world's largest e-commerce market, will provide the most prominent value recovery among Chinese internet stocks, in the broker’s view. The industry is growing faster than the Chinese economy and consumption growth, on the ride of the shift to online shopping and the upward trend in monetization rates driven by advertising technology.

The table below lists Goldman Sachs' latest target prices and investment ratings for the aforementioned stocks:

Stock│Investment Rating│Target Price
TENCENT (00700.HK)│Buy (Conviction List)│$464->$521
BABA-W (09988.HK)│ Buy│$105->$131
JD-SW (09618.HK)│ Buy│$157->$178
MEITUAN-W (03690.HK)│ Buy│$157->$194
PINDUODUO (PDD.US)│ Buy│US$165->US$169
~



AAStocks Financial News
Web Site: www.aastocks.com

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TENCT (P)	27094	345.25 (-)	0.026	9.9 X
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