Bright spots in HK concept stocks rally ?
Many of you have seen a substantial growthin your portfolio if you have been holding Chinese concept stocks like $Meituan(03690)$ $XIAOMI-W(01810)$ $TENCENT(00700)$ $TRIP.COM-S(09961)$
Here I have presented why will continue to rally in near future however....
why among these especially delivery and travel sectors are the bright spots; positives are :
1. After the epidemic is over, users may develop the habit of ordering food delivery out of stickiness (but this is not the early stage of the food delivery platform, and the market share has been saturated)
2. After the epidemic is over, there may be more stores. This is for sure. There are different new stores every year. After the new stores are launched on the platform, they will attract new orders
3. The economic recovery promotes consumption, and more takeaways are ordered. People have more money, and they will order more and more expensive takeaways
4. When looking for a job in the next year, the first choice is to deliver food, which is still the best job to find, and it is still in the stage of cheap labor
But in my personal opinion, the bearish logic is still there but not so strong:
1. The rise after the year is because foreign capital is optimistic about the Chinese economy, and the market is optimistic about the Hong Kong stocks of Chinese concept stocks, not about Meituan
2. Tencent uses Meituan to distribute shares to shareholders. Will it be sold when the ban period is lifted at the end of the year? But not good for long-term holding)
3. Everyone will not go out during the epidemic, so they can only order takeaway. Now everyone can dine-in. Office workers just need takeout, which will not change, but they still prefer dine-in if they have money and leisure. Previously, this part of the order led to an inflated take-out business
4. This company lacks unique value in food delivery, group buying, and hotels. As a platform company, it cannot achieve monopoly or have unique attributes. There is Douyin for group buying, Ctrip for hotel tickets, Didi for taxis, and takeaways are quite competitive. But under the current national conditions, it is impossible for Meituan to obtain excess profits from the younger brothers and consumers.
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though I'm not so sure about the habit of ordering food, thanks for the sharing anyway.
the power of the world's chain supply is more prominent than we thought it would be