Jinwu Financial News | Guoyuan International reports that according to WIND's Hong Kong stock market segment, the weekly rise and fall of the IT industry in the Tier 1 industry was +4.60% last week, showing that it ranked high in the Hong Kong Stock Exchange's Tier 1 industry ranking. In the second-tier industry, the software sector had a rise and fall rate of +5.71%, and the media sector had a rise and fall rate of +1.02%. The software sector ranked first in terms of performance. The PE-TTM for the software and services sector was 16.9x, at 6.73% in the past year, lower than the Hang Seng Technology Index PE-TTM (17.89x), and continued to hover at the bottom; the PS-TTM for the software and services sector was 2.6x, at 4.1% of the past year. Overall, the valuation of China's Internet sector is still at an historically low level.
According to the bank, there are currently opportunities for adaptation in the Hong Kong stock Internet industry as a whole, and after the disclosure of the fiscal year 2023 results, individual stock performance in various segments will clearly diverge. Looking ahead to 2024, it is expected that industry fundamentals will gradually be restored, and AIGC and the entertainment circuit will continue to be popular. The bank will continue to monitor the performance of relevant targets in the secondary market, and will continue to be optimistic about medium- to long-term opportunities in the sector driven by new technology, with a special focus on AIGC-themed catalysis and a rebound in the sector. The recent performance of US technology stocks has continued to be strong. Combined with the upcoming opening of NVIDIAGTC2024, it will further stimulate market confidence in AI and accelerated computing technology. It is expected that the US technology stock market will continue to perform well. Currently, short-term suggestions focus on AIGC technology implementation and computing power-related targets, including Reading Group (00772), Tencent (00700), Bairongyun (06608), Baidu (09888), and Fubo Group (03738). US stock suggestions include Amazon (AMZN.US), Microsoft (MSFT.US), Google (GOOGL.US), CIONBASE (COIN.O), and Nvidia (NVDA.O).