Understanding the Market | Sci-Tech Stocks Rise in the Afternoon, Hang Seng TECH Q3 Profit Expected to Exceed Expectations, Morgan Stanley States Chinese Internet Valuations Still Reasonable

According to the Wise Finance app, Ke.com stocks rose in the afternoon, as of the time of publication, Meituan-W (03690) rose by 6.7% to HKD 181.6; Trip.com Group-S (09961) rose by 5.38% to HKD 477.8; Bilibili-W (09626) rose by 4.35% to HKD 160.7; Kuaishou-W (01024) rose by 2.76% to HKD 46.5.

Founder Securities released a Q3 performance outlook report for the media industry, stating that Hang Seng TECH's profit end is expected to continue the trend of exceeding expectations; key products of Hong Kong stocks companies are entering the revenue recognition period, with Tencent and Bilibili's game business showing signs of recovery. Q3 is a low season for e-commerce, platforms are gradually moving away from "low-price competition" and focusing on differentiated competition and improving commercialization. It is expected that the revenue of e-commerce platforms in Q3 will meet expectations, with profits expected to exceed expectations. In the local life and OTA sectors, Meituan continues to strengthen its core and reduce losses, benefiting from the hot National Day travel season, with potential for Q3 performance to exceed expectations.

Morgan Stanley's report stated that Chinese internet valuations remain reasonable. As policy support needs time to translate into consumer and business confidence, it is believed that even for certain cyclical sectors, the potential upside for profit forecasts in the second half of this year to next year remains uncertain. Revenue growth forecasts for China's internet in 2025 remain unchanged, with the bank expecting mainland e-commerce gross merchandise volume (GMV) to grow by 7%, advertising revenue to grow by 8%, local service total transaction volume (GTV) to rise by 19%, and online travel agency (OTA) revenue to increase by 12%