Yesterday evening, the two "leading brothers" disclosed the latest quarterly results.
Not only is the performance eye-catching, but the repurchase is also crazy, reaching 100 billion respectively! The repurchase amount of each family is equal to the total repurchase amount of Village A in a year......
Why are their performance and repurchase amount so strong? Can the related Hang Seng Technology and China Concept Internet Funds still rise? The specific analysis is discussed below.
1. A total of 200 billion repurchases
Among them, Tencent's performance data is blinding.
According to the announcement, Tencent's revenue in the first quarter of 2024 was 159.501 billion, an increase of 6.34% year-on-year; Net profit (Non-IFRS) was 50.265 billion, a year-on-year increase of 54%.
The point is that Tencent's size is too large, and the net profit of the Big Mac has increased by more than 50%, which is really breathtaking.
By the way, I reviewed the overall data for the next few years:
Source: iFind; Earnings Announcements
It is not difficult to see that the turning point of Tencent's performance occurred in the third quarter of 2022, when the net profit growth rate turned from a decline of 17% to a slight increase of 2%. Subsequently, the growth rate of net profit has been rising, and the growth rate of net profit is also significantly higher than the growth rate of operating income.
To put it bluntly, Tencent is close to the "ceiling", and its revenue growth has slowed down, but it has continued to tap the quality of profitability, and its net profit has continued to reach new highs.
In addition, the repurchase is very powerful, and the repurchase is expected to be 100 billion this year, "We will increase the repurchase efforts, implement the share repurchase of more than 100 billion Hong Kong dollars in 2024 as planned, and continue to invest in AI technology, improve the platform and produce high-value content." ”
After the results were disclosed, Tencent's ADR, which is listed on the U.S. stock market, rose 5% overnight on the basis of continuous gains.
Alibaba, on the other hand, has a somewhat weak performance.
According to the announcement, Alibaba's revenue in the fourth quarter of fiscal year 2024 (time rhythm is different, corresponding to the domestic quarterly report), revenue was 221.874 billion, a year-on-year increase of 7%; Net profit (Non-IFRS) was 23.969 billion, down 5% year-on-year.
But overall it's okay, it's not too bad.
At the same time, the repurchase and dividends are very strong!
According to statistics, Alibaba repurchased $4.8 billion in the first quarter, and $12.5 billion in the past year, which was converted into a whopping 90 billion yuan. In 2024, there will be a dividend of 4 billion US dollars, about 30 billion yuan.
In short, the performance and repurchase strength of the two "leading big brothers" are very powerful. It has constituted a strong support for the Hang Seng Science and Technology Fund and the China Concept Internet Fund, and the bottom of the performance and repurchase have been further consolidated (see below for specific analysis).
By the way, I have screened a complete list of funds for Hang Seng Technology, Hang Seng Internet, and China General Internet, with a total of 16 relevant high-quality funds. The old iron that needs it, kicks me backstage.
2. Why is the performance so strong?
Speaking of which, it is estimated that many Lao Tie wondered: Isn't the economic recovery weak, why are their performance so top and their repurchase power so strong?
First of all, it has to do with the type of company.
Many Internet platform companies generally operate as asset-light platforms. The company's biggest investment may be to gather programmers to build corresponding apps, purchase servers, and later data maintenance and operation. There is no need for too many long-term R&D, production plants and machinery.
There is no inventory, inventory problem.
There is also liquor in a similar industry, the raw material is cheap grains, and the branded liquor produced is thousands of bottles. There is also no inventory problem. Because the longer the time, the higher the price of the wine. In other industries, the longer it goes, the more it will depreciate, deteriorate, and even decay.
This kind of asset-light industry is easy to produce performance.
Secondly, it is related to the status of the industry.
Many Internet platforms dominate the first and second in the industry, with a higher voice in the industry and a strong cash flow.
Finally, it is related to the adjustment of business strategy in recent years.
In the past, after making money, many platforms continued to burn money and expand aggressively, but now they have stopped burning money in a disorderly manner and constantly selling off foreign investment. As a result, more and more cash has accumulated on the company's books.
What is the latest valuation data?
According to iFind data, the latest price-to-earnings ratio of the Hang Seng Tech Index is 24.31 times, and the price-to-book ratio is 2.44 times. It's a bit higher than before, but it's still within a reasonable range.
Source: iFind; As of May 15, 2024
In addition, Hong Kong stocks and Hang Seng Technology also have such a file:
According to public media reports, the Goldman Sachs trading department released a report saying that South Korea has about $2.2 billion in structured wealth management products, which are linked to the Hong Kong stock index. It is expected that the rise of Hong Kong stocks by another 4-8% will trigger a large-scale knock-in, and some institutional large funds will be forced to buy Hong Kong stocks to hedge risks.
It is very similar to the snowball products at the beginning of the year in China, but in the opposite direction, one is triggered by a big fall, and the other is triggered by a big rise.
And for similar events, the market is likely to continue to rise and self-fulfillment in this direction......
Therefore, although Hang Seng Technology and China Concept Internet Fund have risen a lot, they may continue to rise in the short term under the influence of positive performance stimulus and related knock-in events.
Lao Tie, who holds Hengke and China Concept Fund, may wish to hold it again and so on.
Of course, don't chase what you didn't buy. After a rapid short-term rally, it is easy to have a pullback correction. The long-term rise does not mean that there is no correction in the short and medium term. If we look at history, the market has often had twists and turns.
In short, buying on dips, balanced allocation, exchanging time for space, and long-term flow are the kings of investment.
This article is the original of Haomai Academy, if you need to reprint it, please indicate at the beginning of the article that it comes from "Haomai Academy". Without authorization, no media or individual shall reprint it in whole or in part, otherwise it will bear the corresponding legal responsibility.
Disclaimer: The content of this article is based on public information research and does not constitute investment advice. Investors should make prudent decisions and bear risks independently.
Earn while learning, just buy the studio, for more content, you can follow @haomai workshop