BOCOM International·2025-04-08 06:04Investment Rating - The report assigns a "Buy" rating to multiple companies within the internet and education sector, indicating a positive outlook for their future performance [4][10]. Core Insights - The report highlights that the impact of increased tariffs on the internet and education sector is limited in terms of actual business operations, but market sentiment has led to significant valuation adjustments, with some companies nearing their five-year historical lows [3][4]. - The report emphasizes the need for companies in the cross-border e-commerce space to pivot towards high-margin products and enhance operational efficiency in response to changing market conditions [3][8]. - The report notes that advertising budgets may be adjusted due to tariff impacts, but the integration of AI technology is expected to improve advertising efficiency and return on investment [3][8]. Summary by Relevant Sections E-commerce - As of April 7, the current price-to-earnings (P/E) ratios for major platforms are: Alibaba at 8.8x, JD at 7.6x, and Pinduoduo at 8.1x, which are close to their historical lows [3][4]. - The report suggests that e-commerce platforms will benefit from consumption stimulus policies and that the low base effect in the first half of the year may lead to upward adjustments in expectations [3][4]. Online Travel Agencies (OTA) - Current P/E ratios for Ctrip and Tongcheng are 14.5x and 11.4x, respectively. The report indicates that increased tariffs may indirectly affect the OTA sector, but growth in leisure travel is expected to mitigate these impacts [3][4]. Local Services - Meituan's current P/E ratio is 14.9x, with the report noting that there is still room for growth in online penetration within the local services market [3][4]. Gaming and Entertainment - Current P/E ratios for Tencent and NetEase are 15.5x and 11.6x, respectively. The report states that the separation of overseas and domestic operations in gaming and entertainment minimizes the impact of tariffs [3][4]. Valuation Overview - The report provides a detailed valuation table for various companies, indicating that many are trading at or near their historical lows, with significant upside potential based on target prices [4][9].