China
e-commerce
is
one
of
Goldman’s
top
preferred
sub-sectors
—
and
there
will
be
six
key
themes
coming
up
in
2024,
the
bank
said.
The
themes
are:
Consumers’
focus
on
value
for
money
—
for
which
e-commerce
platforms
are
well
positioned.
Advertising
tech
upgrades
to
drive
platform
take
rate,
which
refers
to
the
amount
of
money
—
made
up
of
fees
and
commissions
—
made
from
a
transaction.
Livestreaming
growth.
Market
expansion
from
overseas
opportunities.
User
engagement
set
to
be
driven
by
content
creation
and
categories
that
will
draw
traffic.
Other
growth
drivers,
including
on-demand
services,
grocery
and
pharmaceuticals.
Goldman
said
that
despite
slowing
consumption
growth
in
China,
e-commerce
and
e-commerce
advertising
is
still
one
of
its
top
preferred
sectors
—
thanks
in
part
to
global
expansion
and
attractive
valuations.
The
bank
named
three
Chinese
stocks
it
says
are
“well
positioned
across
the
six
themes.”
They
are
Alibaba
,
which
is
on
Goldman’s
conviction
list,
Pinduoduo
,
and
Kuaishou
.
All
have
a
buy
rating
from
Goldman.
Goldman’s
conviction
list
stocks
are
buy-rated
names
it
expects
to
outperform.
The
bank
said
Pinduoduo
continues
to
gain
market
share
in
domestic
e-commerce,
as
it
improves
its
tools
to
drive
the
adoption
of
its
advertising
products.
Goldman
also
expects
its
global
e-commerce
arm
Temu
to
continue
its
growth
momentum
as
a
result
of
its
global
expansion.
Launched
in
the
U.S.
in
September
last
year,
Temu
was
PDD’s
first
major
push
outside
of
China and
the
app
quickly
found
success
among
budget-conscious
consumers.
“We
…
expect
Pinduoduo
to
be
more
resilient
in
bear/stress
test
scenarios
due
to
its
strongest
value-for-money
customer
mind
share,”
said
the
bank.
Pinduoduo
is
known
for
its
bargain-priced
products.
It
gave
Pinduoduo
a
price
target
of
$155,
or
potential
upside
of
about
9%.
As
for
Alibaba,
the
renewed
focus
on
its
Chinese
online
shopping
platform
Taobao
“could
potentially
drive
more
growth
under
the
environment
where
consumers
pivot
towards
more
value-for-money”
goods,
Goldman
said.
The
bank
said
it
expects
ongoing
buybacks
funded
by
Alibaba’s
free
cash
flow
generation.
It
gave
Alibaba
a
price
target
of
$134,
or
potential
79%
upside.
Goldman
expects
its
third
favored
name
—
Kuaishou
—
to
continue
outpacing
the
industry.
It
noted
that
Kuaishou
has
strong
mind
share
–
consumers’
awareness
of
a
brand
—
in
China’s
lower-tier
cities.
It
gave
Kuaishou
a
potential
upside
of
59%,
as
of
its
Nov.
15
note.
—
CNBC’s
Michael
Bloom,
Evelyn
Cheng
contributed
to
this
report.
