20230517-招银国际-April_online_retail_sales_recap_3页_741kb

China Internet Sector Update Summary (April 2023)

• Analyst Rating and Recommendations: Analyst maintains OUTPERFORM for the China Internet sector. Key recommendations include maintaining Buy on Pinduoduo (PDD), Alibaba (BABA US), and JD.com (JD). These companies are favored due to the recovering e-commerce landscape and their competitive strategies.
• Online Retail Sales Data: April 2023 showed strong YoY growth with online physical goods GMV rising 208% YoY, supporting a two-year CAGR of 70% (slight improvement from March's 68% CAGR). Overall online retail sales GMV grew 123% YoY, indicating a gradual recovery from Q1 levels. Categories like food and clothing demonstrated constant recovery trends.
• Upcoming Consumption Events: Labour Day holiday and the Brand and Quality shopping festival in May are expected to drive further recovery, with festival data showing 116% YoY growth in online sales and significant tourist spending rebounding, reaching near-2019 levels.
• Competitive Landscape: E-commerce competition is intensifying as platforms invest in consumer engagement and merchants' return on investment (ROI). JD.com is controlling expansion to enhance ROI, Pinduoduo focuses on monetization, and Alibaba emphasizes value propositions for customers and merchants.
• Key Drivers: The recovery is fueled by consumer spending rebound and low base effects, with long-term prospects aided by user loyalty, international expansion, and strong management execution.

For detailed stock analysis and additional reports, refer to CMB International Global Markets.