Fubon Wealth's Xu Qimin: Bullish on mobile gaming stocks in the short term, optimistic about A-share market in the medium and long term.

Zhitong App learned that JD-SWR (09618), TENCENT (00700), and Alibaba (09988), three large technology stocks, will announce their quarterly earnings successively on Wednesday (15th) and Thursday (16th). Xu Qimin, Managing Director and Head of Stock Advisory Department at BNP Paribas Wealth Management Asia, said that among the technology stocks that will announce their quarterly results, he is optimistic about the mobile gaming sector. With the resumption of game approvals in mainland China this year, the launch of more new games will benefit related stocks. He also believes that the e-commerce industry has bottomed out, and companies have made many reforms in logistics and warehousing, which is expected to contribute to their performance. However, the Singles' Day shopping festival is no longer as grand as before, and companies are now focusing on profitability and gross profit margin. The previous strategy of sacrificing profits for market share growth is no longer a significant driver.

Xu Qimin also pointed out that in terms of stock market performance, there have been no significant changes in the Hong Kong stock market in recent months. However, mainland China has successively introduced multiple real estate policies, reduced stock stamp duty, and even the "national team" has been buying bank stocks, all of which reflect the government's desire to promote the economy. Therefore, he is optimistic about the medium and long-term prospects of the A+H share market. In terms of sectors, he also has a positive outlook on the gaming industry, noting that the industry had a low base last year, and the current mid-field business income has returned to pre-pandemic levels, filling the gap left by the significant decline in VIP room revenue. Large-scale gaming stocks located in Cotai even have higher gross profit margins than before the pandemic, which is worth paying attention to.