Zheshang Securities(SH:601878) 智通财经网·2025-09-19 08:45Core Viewpoint - The report from Zheshang Securities highlights three key factors driving the Hong Kong internet sector: the positive impact of the Federal Reserve's interest rate cuts, signs of recovery in traditional business, and rapid development in AI applications. The sector's valuation remains at historical lows, presenting strategic investment opportunities in leading internet companies focused on AI advancements [1]. Group 1: Driving Factors - Factor One: Favorable Liquidity The Federal Reserve's recent interest rate cuts are seen as preventive measures, providing marginal benefits to the Hang Seng Technology Index. Additionally, there has been a notable increase in holdings of the Hang Seng Technology stocks by international intermediaries since April, and a significant rebound in holdings through the Stock Connect program since June [2]. - Factor Two: Traditional Business Recovery Internet platform companies are showing signs of improvement in their traditional business segments. The recent easing of competition in the food delivery sector and positive signals from the PMI data in August indicate a potential bottoming out of traditional business [3]. - Factor Three: AI Reshaping Growth Logic Hong Kong internet companies can be categorized into two groups based on their AI advancements: those focusing on general large models and cloud computing, such as Alibaba, Baidu, and Tencent, and those targeting niche applications, like Meitu and Kuaishou. The rapid progress in AI since 2023 is expected to reshape the growth logic of these companies and expand their growth potential [4]. Group 2: Investment Recommendations - Focus on Large Models and Niche Applications As of September 16, the PE-TTM for the Hang Seng Technology Index is approximately 23 times, which is at the 32nd percentile since July 2020. The valuation space for internet leaders with rapid AI advancements is not merely a recovery logic but a redefined growth logic under the AI industry wave. Key companies to watch include Alibaba (09988), Baidu (09888), and Tencent (00700) for large models, and Kuaishou (01024), Meitu (01357), and Kingdee International (00268) for niche applications [5].