Valuations are expected to see a potential recovery, with top internet platforms receiving positive outlook.

This article is sourced from Guoyuan International, Li Chengru.

Recently, the National Development and Reform Commission conducted in-depth research with relevant departments to understand the development of platform enterprises and sorted out a batch of typical investment cases. From the research, it can be seen that platform enterprises continue to increase their investment in areas such as technological innovation and empowering the real economy. In the first quarter of 2023, the top 10 platform enterprises in China increased their investment in areas such as chips, autonomous driving, new energy, and agriculture through independent investment or subsidiary investment, and the proportion of investment continued to rise.

The research report shows that Tencent, Meituan, and Alibaba are all making significant contributions to promoting the deep integration of digital technology and the real economy, and promoting the efficiency improvement of traditional industries.

Positive impact on industry development

Guoyuan International believes that this statement from the National Development and Reform Commission once again affirms the significant contribution of platform-type enterprises to macroeconomic development and scientific technology. With the gradual implementation of previous government guidance and opinions, platform-type enterprises have successfully promoted healthy and standardized development. It is believed that in the future, platform enterprises will continue to strengthen cooperation with scientific research institutions, universities, and innovative enterprises to jointly carry out scientific and technological research and development projects, promote technological innovation, and the transformation and application of intellectual property rights. This cooperation can not only enhance the core competitiveness of platform enterprises but also have a positive impact on the development of national science and technology.

Moreover, as platform enterprises continue to mature in technologies such as artificial intelligence, big data, and Web3.0, it is expected that the government will introduce more policies to support platform investment and innovation projects, promote industrial upgrading and economic growth, and support platform enterprises in expanding their market share in relevant fields. For example, by reducing market access thresholds, optimizing the business environment, and providing tax subsidies, more development opportunities and space will be provided for platform enterprises.

Investment recommendations

We remain optimistic about the development prospects of leading internet platform enterprises, and the role of platform economy in promoting high-quality economic and social development will be further enhanced.

With continuous technological progress and innovative models, the business scale and valuation of leading internet platform enterprises are expected to experience a recovery.

It is recommended to pay attention to leading platforms with strong performance recovery and high certainty, including Tencent, Meituan, Alibaba, and JD.com.