Hong Kong tech stocks surge: JD.com leads with a 7% increase, MEITUAN-W rises over 3%, Alibaba rises over 2%.
Faced with better-than-expected Q1 performance and CEO changes, the market is still quite satisfied with JD.com. Valuations of leading tech stocks remain attractive, and next week's TENCENT and Alibaba earnings may also serve as catalysts for stock price rebounds.
Taking over the overnight rise of the Nasdaq and the massive rebound of Chinese internet companies, Hong Kong's tech stocks exploded today!
On Friday, May 12th, JD.com led the surge in Hong Kong's internet sector, with the Hang Seng Tech Index opening up more than 1%.
JD.com rose more than 7%, JD Logistics rose more than 6%, JD Health, BIDU-SW, and Meituan rose more than 3%, Alibaba rose more than 2%, TENCENT and KUAISHOU-W rose more than 1%; BILIBILI-W fluctuated in the morning, rising more than 1% at one point, then diving and turning negative.
On the news front, JD.com's first-quarter performance exceeded expectations, with revenue of RMB 243 billion, a year-on-year increase of 1.4%; net profit of RMB 6.3 billion, compared to a net loss of RMB 3 billion in the same period last year; adjusted earnings per ADS of RMB 4.76, compared to RMB 2.53 in the same period last year, and an estimated RMB 3.59.
At the same time, JD.com announced that former CEO Xu Lei has retired and CFO Xu Rang has been promoted to CEO.
Despite Morgan Stanley's belief that "faced with significantly better-than-expected performance and CEO changes, JD.com's stock price is expected to be mixed," the overall market reaction to JD.com's performance seems to be positive, as seen in the overnight US stock market and today's Hong Kong stock market.
Looking at the entire internet sector, the valuations of leading tech stocks are still attractive.
China Thai International pointed out that Tencent, Alibaba, and other companies will also release their latest quarterly results next week, which could become a catalyst for stock price rebounds.
Dongwu Securities is also confident in the performance of internet companies, believing that most of their main businesses are concentrated in industries such as consumption and advertising, which are highly correlated with the macro economy. The recovery of the domestic economy will drive rapid revenue growth for internet companies in 2023, and various cost-cutting and efficiency-enhancing measures will contribute to higher profit elasticity for internet companies.