20230816-招银国际-July_online_retail_sales_recap_3页_671kb

China Internet Sector Update - August 2023: The report analyzes online retail sales in China for July 2023, showing online retail GMV grew 12.5% YoY to RMB 8.3 trillion, while online physical goods GMV rose 10.0% YoY to RMB 7.0 trillion. Despite macro uncertainties, e-commerce platforms drive efficient revenue growth, with potential for better-than-expected earnings in 2Q-3Q23 due to competition management. BUY ratings are maintained for Pinduoduo, Alibaba, and JD.com, based on GMV growth potential, user engagement strategies, and cost-effective investments.

Key highlights:

• China's online retail penetration of physical goods increased to 26.4% in 7M23.
• Specific categories show steady growth: food (+8.7% YoY), clothing (+12.0% YoY), consumer goods (+9.5% YoY).
• Analyst certification confirms personal views and no conflicts of interest in stock recommendations.
• Ratings include BUY, HOLD, SELL, NOT RATED, and industry outlook OUTPERFORM for the sector.