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CLSA Predicts Food Delivery War Unsustainable; AI & Cloud Services Revenue to Back Valuation of CN Techs
Recommend 74 Positive 132 Negative 64 |
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Commenting on the recent food delivery war in China's e-commerce market, Liang Xiangyi, Managing Director of Asia Telecom and Internet Research at CLSA, said at a media briefing that the competition was initiated by JD-SW (09618.HK), and that JD-SW and BABA-W (09988.HK) have so far invested RMB10 billion and RMB20 billion respectively. Alibaba, at the moment, maintains a leading market share, but its aggressive food delivery subsidy model is expected to be unsustainable. She also mentioned that the competitive pressure in the emerging cloud services market is relatively small, and future AI-related businesses are expected to become a key driver for Chinese tech stocks. In the US, AI has driven market growth for several years, whereas a similar trend is projected in the Chinese market. In the short term, AI-related business and cloud service revenue are likely to beat expectations, supporting valuations. Moreover, with global funds recently revisiting the Chinese market, sustained global capital inflow will further bolster market performance. Separately, Gao Xiner, Head of China Consumer Goods Industry Research at CLSA, commented that investors have shown a positive view of China's IP commerce. Among them, POP MART (09992.HK), as an IP owner and direct-to-consumer (DTC) channel operator, was assumed to have the potential to grow into a large-scale IP management company. AASTOCKS Financial News Website: www.aastocks.com |
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