CMBI has issued a research report highlighting that the liquidity trend in China's stock market (A+H market) is improving, while the narrative around China's AI is becoming more positive.
Upbeat about the long- and medium-term investment value of the China-US internet and software sectors, the broker has recommended focusing on BABA-W (09988.HK) (BABA.US), BIDU-SW (09888.HK) (BIDU.US), and Microsoft (MSFT.US), whose cloud business growth is expected to remain strong and power stock price growth.
In addition, TENCENT (00700.HK), whose advertising and cloud business will maintain fast growth thanks to AI, and KUAISHOU-W (01024.HK), whose Kling AI will improve the company's revenue potential and valuation with its positive progress in monetization, are worth attention as well.
CMBI has also suggested investors eye China-US software companies that have made substantial progress in AI monetization and still have room for valuation enhancement, such as Palo Alto Networks (PANW.US), Datadog (DDOG.US), and KINGDEE INT'L (00268.HK).
The Chinese internet industry is rated as Outperform by CMBI.
~
AAStocks Financial News
Web Site: www.aastocks.com
| SG Top Picks |
| Stock & Type |
Code |
Strike(Call Level) |
Last |
Effective Gearing |
| KINGD (C) |
19490 |
22.7 (-) |
0.085 |
5.1 X |
| TENCT (C) |
21039 |
889.3 (-) |
0.096 |
9.1 X |
| TENCT (C) |
20304 |
838.5 (-) |
0.102 |
9.8 X |
| TENCT (C) |
19896 |
812 (-) |
0.136 |
9.3 X |
| TENCT (C) |
18940 |
751.2 (-) |
0.153 |
10.6 X |
| TENCT (P) |
20306 |
510.38 (-) |
0.063 |
9.4 X |
| TENCT (P) |
19153 |
468.48 (-) |
0.029 |
10.3 X |
| TENCT (Bull) |
57412 |
623 (626) |
0.067 |
19.4 X |
| TENCT (Bull) |
56199 |
608 (611) |
0.100 |
13.0 X |
| TENCT (Bear) |
67893 |
703 (700) |
0.079 |
16.5 X |
| TENCT (Bear) |
69236 |
688 (685) |
0.059 |
22.1 X |
| KUASO (C) |
19329 |
98.93 (-) |
0.188 |
3.9 X |
| KUASO (C) |
20352 |
96 (-) |
0.232 |
3.5 X |
| KUASO (C) |
15289 |
91.05 (-) |
0.093 |
7.2 X |
| KUASO (P) |
19797 |
68.33 (-) |
0.087 |
4.1 X |
| KUASO (P) |
18456 |
49.83 (-) |
0.074 |
2.5 X |
| KUASO (Bull) |
66925 |
76.3 (78.8) |
0.083 |
10.1 X |
| KUASO (Bull) |
63872 |
72.3 (74.8) |
0.124 |
6.8 X |
| KUASO (Bear) |
66918 |
105.5 (103) |
0.186 |
4.5 X |
| KUASO (Bear) |
62924 |
95.5 (93) |
0.103 |
8.1 X |
| BAIDU (C) |
20405 |
168.98 (-) |
0.230 |
4.0 X |
| BAIDU (C) |
21044 |
150 (-) |
0.124 |
4.3 X |
| BAIDU (P) |
20802 |
113.78 (-) |
0.150 |
2.6 X |
| BAIDU (P) |
20797 |
95.83 (-) |
0.102 |
4.2 X |
| BAIDU (Bear) |
53254 |
157 (155) |
0.056 |
4.5 X |
| ALIBA (C) |
21234 |
216.5 (-) |
0.112 |
4.8 X |
| ALIBA (C) |
21043 |
188.98 (-) |
0.132 |
5.2 X |
| ALIBA (C) |
14651 |
172.98 (-) |
0.140 |
5.8 X |
| ALIBA (C) |
15287 |
170.1 (-) |
0.200 |
4.5 X |
| ALIBA (P) |
21411 |
158.78 (-) |
0.161 |
3.8 X |
| ALIBA (P) |
21288 |
149.78 (-) |
0.124 |
4.0 X |
| ALIBA (Bull) |
64276 |
157.5 (159) |
0.090 |
18.4 X |
| ALIBA (Bull) |
60928 |
152 (153.5) |
0.031 |
10.7 X |
| ALIBA (Bear) |
58308 |
191.5 (190) |
0.045 |
7.4 X |
| ALIBA (Bear) |
58217 |
186.5 (185) |
0.038 |
8.7 X |
| MSFT (C) |
10744 |
600 (-) |
0.275 |
9.0 X |
| MSFT (P) |
10715 |
435 (-) |
0.192 |
7.0 X |
