Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>UBS Still Sees Upside Potential Despite Risk for Near Term Pullback in CN Techs
Recommend 153 Positive 259 Negative 146 |
||||
|
||||
|
KraneShares Trust KraneShares CSI China Internet ETF (KWEB.US) swelled 7% since 28 January, driven by DeepSeeK, UBS issued a research report saying. Despite the risk of a near-term pullback in Chinese techs, UBS still saw upside potential, as valuation remains undemanding. Even after the rebound, average industry PE ratio was 14x, with EPS growth rate expected to be 15% from 2024 to 2026. In the broker's view, the potential macro stimulus from the government and the meaningful benefits of AI productivity gains have yet to be reflected. In terms of allocation, UBS' top pick is JD.com (JD.US), followed by TENCENT (00700.HK), NetEase (NTES.US) and KUAISHOU-W (01024.HK). The broker believed that the extent of AI benefits for TENCENT and KUAISHOU-W is still underestimated. JD.com is a relative laggard in the AI uptrend, with a low valuation and a number of catalysts (strong 4Q24 results, faster 2025 revenue growth, etc.). NetEase is not directly benefiting from AI, but its new games are performing strongly, with solid product line. Therefore, it is expected that the market will raise its forecasts for NetEase. AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
