Source: Wall Street News
PIMCO analysts believe that from a value perspective, securities currently look quite attractive, and that the valuations of Internet companies such as Ali and Tencent have fallen to historic lows. In mid-September 2023, the PE for Internet stocks was 15.7 times, while in March 2024, PE valuations fell to a low level of about 13 times.
A quantitative fund owned by Pimco is shifting to CPC technology stocks, saying that valuations are attractive after the sharp decline.
Recently, Chris Brightman, chief investment officer of Research Affiliates LLC, a quantitative fund owned by Pacific Investment Management Corporation (PIMCO), said in an interview with the media, such as$Alibaba (BABA.US)$/$BABA-SW (09988.HK)$und$TENCENT (00700.HK)$When Internet companies see their valuations fall to historic lows, their stock prices are already very attractive. “From a value perspective, stock quotes currently look very attractive, while Indian stocks are very expensive in comparison.”
According to media reports, Chris Brightman's views are similar to some other fund managers. They believe that China's economic recovery has been strong recently, and if an appropriate catalyst appears, Chinese securities are expected to rebound sharply.
According to data, according to the 2023 profit forecast, the valuation of China Internet stocks was 15.7 times PE in September 2023, 14.2 times PE in December 23, and dropped to around 13 times in March 2024, which is low.
Overnight, US stocks and popular Chinese securities generally rose.$NASDAQ Golden Dragon China (.HXC.US)$It closed up 1.9%, outperforming the market and rising for three consecutive days to close since March 21.$KraneShares CSI China Internet ETF (KWEB.US)$It rose 2.25%, Ali rose 1.4%, and JD rose more than 1.3%.
Currently, the price-earnings ratio of the NASDAQ China Golden Dragon Index is only 20 times, while the price-earnings ratio of the US NASDAQ Index has reached 30.05 times. From a valuation perspective, China Securities is very attractive.
According to data compiled by the media, the Pimco RAE Emerging Markets Fund, which holds a large number of Chinese stocks, helped it beat 94% of its peers over the past year, even as some well-known investors reduced their market exposure during this period.
March is the disclosure period for China Securities. According to current performance disclosure estimates, it is basically in line with market expectations. Analysts pointed out that the existing China Securities Internet has characteristics such as steady growth, undervaluation, and reasonable dividends, and is probably the best time to invest.
On the one hand, the profits of leading companies continue to grow, such as Tencent, Ali,$PDD Holdings (PDD.US)$etc.; on the other hand, companies that originally lost money are quickly releasing profits, such as$MEITUAN-W (03690.HK)$,$KUAISHOU-W (01024.HK)$etc.
At the same time, most Chinese securities have gradually begun to strengthen shareholder returns, using dividends and repurchases to return more shareholders. According to the consolidation, 20 companies have implemented repurchases and dividends, and the amount of return is increasing year by year. According to some opinions, CPC has changed from growth stocks to “high-interest stocks.” Since many CIC companies have already clarified shareholder return plans for the next few years, it can be expected that their shareholder returns will be further strengthened in the next few years.
Editor/jayden