Rating Quick Look | BABA-SWR's target price significantly lowered after performance! "Buy" for TENCENT, SMIC also faces "price cut"

Goldman Sachs: Lowering Alibaba's target stock price from $121 to $105

Goldman Sachs believes that BABA-SWR's quarterly performance is in line with expectations, promising stable capital returns to shareholders through buybacks while reigniting core profit growth. The main risks for the stock are slowing growth in Gross Merchandise Volume (GMV) and lower monetization, facing intense competition.

Guohai Securities: Maintaining a "buy" rating on Tencent with a target price of HKD 412

The report states that based on industry research, the DAU and usage time of Video Number are expected to show strong year-on-year growth in 2023, with an average DAU of 450 million and an average daily usage time of 54 minutes per person.

With the support of the WeChat ecosystem, Video Number's user behavior has obvious social attributes and high content dissemination efficiency. According to New Rankings data, Video Number works account for 79.8% of the likes received in 7 days compared to 30 days, and user reposts account for 39.3% of the interaction index, higher than other major competitors.

The overall content of Video Number tends to be more diverse in general life, general information, and general knowledge. From 2021 to 2023, emotional, social and political, and lifestyle content will lead the consumption of Video Number users, but the concentration of top categories will decrease, making the overall content ecosystem more diversified.

The bank believes that compared to Video Number, Douyin and KUAISHOU-W have more complete creator support programs and provide greater traffic and cash incentives. Video Number currently mainly relies on traffic incentives, but it is expected to continue to increase support for creators and strengthen the construction of commercial infrastructure to help creators monetize their content and traffic.

According to the bank's calculations, the average income level of creators in 2023 is relatively higher on Douyin, followed by KUAISHOU-W, and Video Number is about half of KUAISHOU-W's level. According to research, the proportion of social recommendations from followers and friends and the proportion of machine recommendations on Video Number have been continuously decreasing since 2021, with machine recommendations accounting for more than 50% as of Q3 2023.

Jefferies: Lowering the target price of SMIC from HKD 22 to HKD 16, maintaining a "hold" rating

The report points out that SMIC's revenue in the last quarter increased by 4% year-on-year to $1.7 billion, slightly higher than expected by 1%; the gross margin fell by 15.6 percentage points to 16.4%, lower than expected by 0.9 percentage points, mainly due to the downward adjustment of product prices and a utilization rate (UTR) below 80%; net profit fell by 55% year-on-year, exceeding the bank's and market expectations.

The bank mentioned that SMIC's revenue guidance for the first quarter of this year is expected to remain flat to a 2% increase on a quarterly basis, with a gross margin decline of about 6 percentage points to between 9% and 11%, and capital expenditures remaining at approximately $7.5 billion.

In addition, the bank has lowered its revenue forecast for SMIC for the years 2024 to 2026 by 16%, mainly due to the adverse impact of product prices and utilization rates, as well as weak but relatively high depreciation and amortization (D&A), which may bring greater pressure on gross profit and profitability in the coming years.

Morgan Stanley: Giving Li Ning an "overweight" rating, lowering the target price from HKD 51 to HKD 30 Bank of America: Reiterates "Buy" rating on Uber, raises target price to $78

The report states that Uber's performance in the last quarter exceeded expectations for most financial indicators. As a result, the first-quarter forecast has been slightly adjusted, with a 1% increase in order volume to $38.3 billion, a 1% increase in revenue to $10.1 billion, and a 3% increase in EBITDA to $1.33 billion.

For the key valuation year of 2025, the forecast for order volume, revenue, and EBITDA has been raised from $190.1 billion, $51.25 billion, and $8.02 billion to $192.8 billion, $51.37 billion, and $8.24 billion, respectively.

Bank of America Securities points out that Uber's performance was not surprising, but it demonstrated the company's stable execution, which has been a key factor in driving Uber's strong stock performance over the past two years. In addition, the increase in Uber One membership may enhance Uber's overall franchise value.