UBS Foresees JD 2023 Growth to Slightly Miss BABA; Mkt Overly Pessimistic on MEITUAN
In a recent report, UBS expressed its opinions on $BABA-SW(09988.HK$ , $JD-SW(09618.HK$ and $MEITUAN-W(03690.HK$.
UBS noted that BABA's GMV grew 18% YoY in April, up from 13% in March. JD's GMV meanwhile grew 6% in April, lagging behind BABA. The data reflected that BABA is now maintaining its market share, while JD is losing. The broker forecasted JD's growth to lag slightly behind BABA's for most of the year.
UBS believed that the market is too pessimistic about MEITUAN due to competition from Douyin $ByteDance(FT0001$ . Similarly, investors have downgraded Pinduoduo due to competition concerns, but this does not fully reflect its growth in China and is unfavorable to its cross-border e-commerce platform Temu. UBS also likes BABA because its GMV and CMR growth is recovering and management is releasing value through asset spinoffs and share buybacks.
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