Chinese technology stocks maintain attractive reviews, despite the restoration of the sector

The cheap judgments of Chinese technology stocks attract more investors, after the end of the company’s profit announcement season, which was an improvement in results, stocks and profit distributions. Futures index analysts “Hang Sing Tech” increased the highest level in three years after “Tennint Holdings” and other companies made better profits than expected. The results of profits have improved after the Beijing administration has alleviated its strict organizational campaign that has been going on for several years. This improvement also indicates that the shares of Chinese technology companies may have already reached the bottom and are now preparing to climb. Some investors have already returned to invest in the crisis technology sector, which has increased the ‘Hang Sing Tech’ index since the end of January. But even after this height, the indication that follows major technology companies in China still trades with a profitability of less than 17 times the estimates of future profits, and this is compared to the historic average for 5 years of 26 times. The profitability of the “Nasdaq 100” index is 26 times. “The shares of Chinese technology are discussing my attractive assessments, and I think we are far from the highlight of the highlight,” says Jian Shi Cortei, who works as a fund manager at Gam Investment Management. He added: “Several Chinese technology companies have strengthened their profits over the past few seasons, and investors eventually show interest in this.” The index is still 60% less compared to the peak that reached 2021. The significant decrease in the lowest levels of its lowest levels in a few years, as concerns about Beijing and economic growth have decreased over the past period. In recent months, economic policymakers have been supporting more support, and they have said that technology companies will help improve innovation. The profit of Chinese technology companies is being improved, “Tenning” is close to achieving the highest monthly gains series in its share prices since 2018. Last week, the company announced a 62% increase in quarterly profits as sales of its ads doubled thanks to the video similar to “Tech Talk”. Analysts have increased the average price target for the share by about 9% since the announcement of the results, and expect the tangible improvement of game activities during the current quarter to lead to the rise of the arrow. The CDC and the leading company in the field of Internet search engines “Baidu” also made better profits than expected. Cortisi, from “Gam Investment”, attributed the strong results to better cost management and “more rational competition”, in addition to rationalizing investments, adding that the rise of the shareholders’ returns is also positive for shares. In the same context, shareholders benefit from improving profits, and the re -purchases of shares can be achieved by ‘Tennenens’, ‘Ali Baba Group Holding’, ‘JD.com’, ‘Methan’ and ‘Baidu’ to a record level of 28 billion during 2024, from less than $ 20 billion in 2023, according to ‘Bloomberg intelligence’. The profit deductions of these businesses are also expected to increase to $ 10 billion compared to $ 8.3 billion in 2023, according to the estimates of “Bloomberg Instinus”. The decline in pessimism towards China The technology companies have continuous challenges. Chinese consumers are still cautious with their spending, and the competition is raging between old businesses and new expatriates on the sector, and its impact clearly shows the disappointing data issued by the “Ali Baba” group. But there are indications that excessive pessimism is declining, as the fluctuations of “Ali Baba” share, which lasted three months, have dropped to almost their lowest levels since 2021, indicating that demand for investors to hedgehog has decreased. More indicators can appear on the extent to which consumption has recovered this week after announcing the results of “BDD Holdings” to manage e -commerce and the leading company’s “net” games. On the other hand, the Chinese government may provide new incentives for the economy, although investors are still keeping their caution after launching strict organizational campaigns for the sector, and recent trade tensions with the United States and the European Union. There is also another opportunity to improve the profits of technology shares despite the ‘geopolitical noise’ that negatively affects Chinese stocks, according to Xiadong Pu, director of funds at Edmond de Rothschild Asset Management. “I think the recovery of Chinese technology stocks can continue because of their attractive evaluation compared to US technology companies, the limited investment position of global investors, in addition to improving the basics of the sector,” Bau concluded.