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<Research>Jefferies Expects CN Cloud Service Providers' 1Q Earnings Beat, Sees 40% Hike in Rev. of Baidu Cloud/ Alibaba Cloud
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Chinese dotcoms inclined this morning (16th). BABA-W (09988.HK) leaped 4.6% to $134.5, while TENCENT (00700.HK) ballooned 2.8% to $513. BIDU-SW (09888.HK) hyped up 8.4%, while NTES-S (09999.HK) elevated 4.6%. Jefferies published a research report providing a preview of 1Q26 results of Chinese internet and technology sectors. The broker expected Ai-driven cloud revenue to accelerate, with logistics and e-commerce performance exceeding expectations. Jefferies estimated that positive surprises include BIDU-SW (09888.HK)'s higher-than-expected smart cloud infrastructure revenue, as well as better-than-expected 1Q26 earnings from JD-SW (09618.HK) and JD LOGISTICS (02618.HK). The broker maintained its preferences and pecking orders across sub-sectors. Jefferies forecasted that BIDU-SW's AI cloud infrastructure revenue will grow by more than 40% YoY, significantly above market consensus. Alibaba Cloud revenue is also expected to rise 40% YoY, driven by surging AI demand and higher token consumption. KINGSOFT CLOUD (03896.HK) raised its full-year outlook, while Tencent Cloud revenue accelerated. Chinese cloud service providers are set to hike prices this week on tight supply and robust demand. In the AI lab space, MINIMAX-W (00100.HK) and KNOWLEDGE ATLAS (02513.HK) have both demonstrated strong growth. Therefore, the broker's sector stock preferences are as follows: BABA-W and TENCENT (00700.HK) are its sector top picks, followed by BIDU-SW, JD-SW, MINIMAX-W, KINGSOFT CLOUD, NTES-S (09999.HK), KUAISHOU-W (01024.HK), BILIBILI-W (09626.HK), MEITUAN-W (03690.HK), JD LOGISTICS, ZTO EXPRESS-W (02057.HK), J&T EXPRESS-W (01519.HK), TRIP.COM-S (09961.HK), TONGCHENGTRAVEL (00780.HK), HWORLD-S (01179.HK), Atour Lifestyle Holdings (ATAT.US), PDD Holdings (PDD.US), BOSS ZHIPIN-W (02076.HK), Full Truck Alliance (YMM.US), BEKE-W (02423.HK), Vipshop Holdings (VIPS.US), MEITU (01357.HK), JOYY (JOYY.US), SF INTRA-CITY (09699.HK), DAMAI ENT (01060.HK), TME-SW (01698.HK), NETEASE MUSIC (09899.HK) and Qfin Holdings (QFIN.US). Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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