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<Research>Jefferies Expects CN Cloud Service Providers' 1Q Earnings Beat, Sees 40% Hike in Rev. of Baidu Cloud/ Alibaba Cloud
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...
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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)  +0.600 (+0.442%)    Short selling $1.72B; Ratio 15.118%   leaped 4.6% to $134.5, while TENCENT (00700.HK)  -6.500 (-1.257%)    Short selling $1.23B; Ratio 17.483%   ballooned 2.8% to $513. BIDU-SW (09888.HK)  -1.400 (-1.135%)    Short selling $262.15M; Ratio 29.017%   hyped up 8.4%, while NTES-S (09999.HK)  -4.300 (-2.304%)    Short selling $144.02M; Ratio 19.662%   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.

Related News Guosen Securities Lists Top 10 HK Stocks by Foreign Net Inflows and Outflows in 1Q26 (Table)
Jefferies estimated that positive surprises include BIDU-SW (09888.HK)  -1.400 (-1.135%)    Short selling $262.15M; Ratio 29.017%   's higher-than-expected smart cloud infrastructure revenue, as well as better-than-expected 1Q26 earnings from JD-SW (09618.HK)  -1.200 (-0.969%)    Short selling $291.99M; Ratio 27.165%   and JD LOGISTICS (02618.HK)  -0.080 (-0.502%)    Short selling $55.73M; Ratio 27.754%   . 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)  +0.010 (+0.108%)    Short selling $37.38M; Ratio 5.357%   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)  -41.500 (-4.609%)    Short selling $116.97M; Ratio 17.130%   and KNOWLEDGE ATLAS (02513.HK)  +8.000 (+0.906%)    Short selling $27.92M; Ratio 3.675%   have both demonstrated strong growth.

Related News CMBI Expects TENCENT (00700.HK) 1Q26 Results to Be Solid, Says Market Overreacted to AI Investment
Therefore, the broker's sector stock preferences are as follows: BABA-W and TENCENT (00700.HK)  -6.500 (-1.257%)    Short selling $1.23B; Ratio 17.483%   are its sector top picks, followed by BIDU-SW, JD-SW, MINIMAX-W, KINGSOFT CLOUD, NTES-S (09999.HK)  -4.300 (-2.304%)    Short selling $144.02M; Ratio 19.662%   , KUAISHOU-W (01024.HK)  -0.600 (-1.275%)    Short selling $208.30M; Ratio 16.354%   , BILIBILI-W (09626.HK)  -4.200 (-2.108%)    Short selling $52.14M; Ratio 12.264%   , MEITUAN-W (03690.HK)  -2.250 (-2.535%)    Short selling $1.17B; Ratio 29.135%   , JD LOGISTICS, ZTO EXPRESS-W (02057.HK)  -3.900 (-1.964%)    Short selling $122.89M; Ratio 44.125%   , J&T EXPRESS-W (01519.HK)  -0.070 (-0.662%)    Short selling $5.06M; Ratio 3.114%   , TRIP.COM-S (09961.HK)  -2.600 (-0.604%)    Short selling $45.77M; Ratio 6.900%   , TONGCHENGTRAVEL (00780.HK)  -0.310 (-1.615%)    Short selling $26.88M; Ratio 27.924%   , HWORLD-S (01179.HK)  +0.720 (+1.697%)    Short selling $13.60M; Ratio 14.293%   , Atour Lifestyle Holdings (ATAT.US)      , PDD Holdings (PDD.US)      , BOSS ZHIPIN-W (02076.HK)  -0.600 (-1.078%)    Short selling $484.48K; Ratio 4.091%   , Full Truck Alliance (YMM.US)      , BEKE-W (02423.HK)  -0.760 (-1.765%)    Short selling $157.89M; Ratio 39.306%   , Vipshop Holdings (VIPS.US)      , MEITU (01357.HK)  -0.040 (-0.857%)    Short selling $61.59M; Ratio 28.070%   , JOYY (JOYY.US)      , SF INTRA-CITY (09699.HK)  -0.120 (-1.053%)    Short selling $718.86K; Ratio 5.817%   , DAMAI ENT (01060.HK)  -0.020 (-3.175%)    Short selling $13.78M; Ratio 17.554%   , TME-SW (01698.HK)  -0.100 (-0.251%)    Short selling $7.53M; Ratio 13.452%   , NETEASE MUSIC (09899.HK)  -2.800 (-2.191%)    Short selling $19.03M; Ratio 18.425%   and Qfin Holdings (QFIN.US)      .
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-17 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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