Jefferies published a research report, revealing that it met with European investors last week. Amid the macroeconomic downturn and geopolitical tension, investors seem to be interested in the sustainability and profit growth of the Asia-Pacific (outside of Japan) internet segment, focusing mainly on topics such as travel and local service needs, upcoming game and game regulatory approval, domestic and international online shopping market patterns, and the advertising industry's macro situation. According to the bank, investors are currently mainly focusing on corporate profit growth, industry valuation, industry segmentation trends, etc. When considering valuations from this year onwards, Internet companies with profit prospects of 2 to 3 years are more valued.
Jefferies also mentioned that investors seem to prefer industries with stable market shares, few participants, and companies with high quality growth potential. They believe that Tencent's diversified development model and “high-quality growth strategy” that focuses on increasing gross margin have made it the first choice for industries in the region. As for industry segments, the bank is optimistic about tourism, entertainment, and local services because related industries have many potential catalysts and high prospects.