China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

How to Stimulate China's Consumption? Part I

How to Stimulate China's Consumption, Part III

How to Stimulate China's Consumption, Part II

China New Economy Equity Analyst, Blue Lotus Research Institute

Robert McKay

China New Economy Equity Analyst

Thematic (Sector/Industry)

China Textiles, apparel and luxury goods / Thematic (Sector/Industry)

<ul>
<li>There have been various rumors regarding China's consumption in general and e-commerce trend in particular. Two of the recent ones are <strong>weak 618 sales</strong> and <strong>keep-it-refunds</strong>;</li>
<li>While we are in general pessimistic on Chinese consumption in the medium term, government subsidies and consumption vouchers are helping to keep consumption, especially e-commerce, going in healthy pace;</li>
<li>Our TOP PICKS are Alibaba and PDD, both trading at attractive valuations of 7.4x and 9.5x CY24 P/E. Solid June consumption, positive 3Q outlook, and EPS expansion are upcoming catalysts.</li>
</ul>


There have been various rumors regarding China's consumption in general and e-commerce trend in particular. Two of the recent ones are weak 618 sales and keep-it-refunds;
While we are in general pessimistic on Chinese consumption in the medium term, government subsidies and consumption vouchers are helping to keep consumption, especially e-commerce, going in healthy pace;
Our TOP PICKS are Alibaba and PDD, both trading at attractive valuations of 7.4x and 9.5x CY24 P/E. Solid June consumption, positive 3Q outlook, and EPS expansion are upcoming catalysts.


China's E-Commerce Is Not as Bad as the Stock Prices Suggest