Credit Suisse: the Internet industry is attractive in the second half of the year, optimistic about Ali and Kuaishou, etc.
Credit Suisse released a research report saying that when China's Internet industry enters the second half of this year, the risk return is attractive and the valuation is not high, the position is relatively small, there is room for upward profit, and the regulatory environment is favorable. In the short term (3 to 6 months), it is optimistic that there is room for improvement in operation, but it is underestimated by the market. Alibaba-SW (09988) and Kuaishou-W (01024) are optimistic.
The report mentioned that pinduoduo (PDD.US) is expected to transition from high income to considerable profit growth, Ctrip Group-S (09961) should benefit from the growth of short-distance travel market share, strong recovery in outbound travel, and Baidu Group-SW (09888) benefit from a competitive landscape with diversified advertising mix, platform interoperability and favorable cloud business. In terms of long-term strategy, it is recommended to collect shares with low permeability or high barriers to entry in sub-sectors, such as JD.com Group-SW (09618), BOSS Direct Employment (BZ.US), Manbang Group (YMM.US), Meituan-W (03690), Tencent (00700), NetEase-S (09999) and so on.
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