Goldman Sachs·2025-05-12 08:41Investment Rating - The report maintains a "Buy" rating for Tencent, Alibaba, PDD, and Meituan, indicating positive expectations for their performance in the upcoming quarters [6][9][10][11]. Core Insights - The report anticipates strong 1Q results for major players like Tencent, Alibaba, and JD, driven by sustained consumer spending and growth in advertising and cloud services [1][2]. - Key investor focuses include the competitive landscape in food delivery, AI capital expenditures, and geopolitical developments affecting cross-border business models [2][11]. Summary by Company Tencent - Expected 1Q advertising revenue growth of +18% and overall group revenue growth of +10% year-over-year [1][12]. - Focus areas include AI-driven adtech upgrades, sustainability of gaming revenue, and implications of recent policy changes on WeChat payment trends [7][12]. Alibaba - Anticipated 1Q Customer Management Revenue (CMR) growth of +9% and group EBIT growth of +12% year-over-year [1][13]. - Key focuses include Alibaba Cloud's revenue growth driven by AI demand, competitive landscape in eCommerce, and implications of new foreign chip restrictions [7][13]. JD - Expected 1Q Retail revenue growth of +28% year-over-year, with a focus on the impact of JD's entry into food delivery on overall profitability [11][12]. - Key discussions revolve around updated profit guidance for FY25 and strategies to maintain user engagement in food delivery [11][12]. PDD - Anticipated solid growth in core local commerce profits, with a focus on the implications of Temu's business model changes and competitive dynamics in the eCommerce space [10][14]. - Key focuses include GMV growth drivers and the impact of geopolitical policies on business operations [10][14]. Meituan - Expected 1Q revenue growth of +17% year-over-year, with a focus on maintaining leadership in food delivery amidst increased competition [10][16]. - Key discussions include the sustainability of core local commerce profits and the impact of new initiatives on overall profitability [10][16].