CMS·2025-07-02 11:49Investment Rating - The report maintains a "strongly recommended" rating for Meituan, Alibaba, JD Group, Pinduoduo, and Vipshop, indicating a positive outlook for these companies in the e-commerce sector [18][21][24]. Core Insights - The local lifestyle sector remains competitive, but Meituan's long-term competitiveness and investment value are intact, making it a key recommendation [19]. - In the e-commerce sector, leading companies are currently undervalued, with Alibaba, JD Group, Pinduoduo, and Vipshop being highlighted as strong investment opportunities [18][21]. - The upcoming summer travel season is expected to boost the tourism sector, with a focus on short-distance self-driving and family trips, despite a recent slowdown in outbound travel demand [5][19]. Summary by Sections Industry Performance - The restaurant and tourism sector index rose by 3.91%, outperforming the CSI 300 index (up 1.95%) but underperforming the ChiNext index (up 5.69%) [5][7]. - The retail sector index increased by 4.38%, also outperforming the CSI 300 index but underperforming the ChiNext index [5][7]. Key Company Developments - Alibaba has integrated Ele.me and Fliggy into its China e-commerce group, enhancing its consumer service platform [5][27]. - Meituan is expanding its instant retail services, aiming to enhance user experience across various product categories [5][28]. - Taobao Flash Sale and Ele.me have achieved over 60 million daily orders, reflecting a 179% year-on-year growth in retail orders [5][29]. Investment Recommendations - E-commerce: The report suggests that concerns over competition are overstated, with expected profit growth for major players like Alibaba, Pinduoduo, JD, and Vipshop [18]. - Local lifestyle: Meituan's core business growth and barriers remain strong, with a projected core business operating profit of 53.2 billion yuan for 2025 [19]. - Retail: Focus on quality retail trends, with recommendations for Yonghui and other quality retailers showing promising growth [19]. Company Performance Metrics - The report provides performance metrics for key companies, indicating strong earnings growth and favorable price-to-earnings ratios for companies like JD and Alibaba [23][24].