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<Research>Jefferies Expects CN Cloud Service Providers' 1Q Earnings Beat, Sees 40% Hike in Rev. of Baidu Cloud/ Alibaba Cloud
Recommend 130 Positive 197 Negative 97 |
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Chinese dotcoms inclined this morning (16th). BABA-W (09988.HK) leaped 4.6% to $134.5, while TENCENT (00700.HK) ballooned 2.8% to $513. BIDU-SW (09888.HK) hyped up 8.4%, while NTES-S (09999.HK) elevated 4.6%. Jefferies published a research report providing a preview of 1Q26 results of Chinese internet and technology sectors. The broker expected Ai-driven cloud revenue to accelerate, with logistics and e-commerce performance exceeding expectations. Jefferies estimated that positive surprises include BIDU-SW (09888.HK)'s higher-than-expected smart cloud infrastructure revenue, as well as better-than-expected 1Q26 earnings from JD-SW (09618.HK) and JD LOGISTICS (02618.HK). The broker maintained its preferences and pecking orders across sub-sectors. Jefferies forecasted that BIDU-SW's AI cloud infrastructure revenue will grow by more than 40% YoY, significantly above market consensus. Alibaba Cloud revenue is also expected to rise 40% YoY, driven by surging AI demand and higher token consumption. KINGSOFT CLOUD (03896.HK) raised its full-year outlook, while Tencent Cloud revenue accelerated. Chinese cloud service providers are set to hike prices this week on tight supply and robust demand. In the AI lab space, MINIMAX-W (00100.HK) and KNOWLEDGE ATLAS (02513.HK) have both demonstrated strong growth. Therefore, the broker's sector stock preferences are as follows: BABA-W and TENCENT (00700.HK) are its sector top picks, followed by BIDU-SW, JD-SW, MINIMAX-W, KINGSOFT CLOUD, NTES-S (09999.HK), KUAISHOU-W (01024.HK), BILIBILI-W (09626.HK), MEITUAN-W (03690.HK), JD LOGISTICS, ZTO EXPRESS-W (02057.HK), J&T EXPRESS-W (01519.HK), TRIP.COM-S (09961.HK), TONGCHENGTRAVEL (00780.HK), HWORLD-S (01179.HK), Atour Lifestyle Holdings (ATAT.US), PDD Holdings (PDD.US), BOSS ZHIPIN-W (02076.HK), Full Truck Alliance (YMM.US), BEKE-W (02423.HK), Vipshop Holdings (VIPS.US), MEITU (01357.HK), JOYY (JOYY.US), SF INTRA-CITY (09699.HK), DAMAI ENT (01060.HK), TME-SW (01698.HK), NETEASE MUSIC (09899.HK) and Qfin Holdings (QFIN.US). Auto-translated by AI AASTOCKS Financial News |
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