$PDD Holdings (PDD.US)$ $Alibaba (BABA.US)$ $JD.com (JD.US)$ $Bilibili (BILI.US)$
On December 24, 2021, the Guojun Allocation Team took the lead in pointing out that “whether the Chinese Internet sector is very popular, the allocation value is gradually becoming prominent”, in an effort to find opportunities on the left side of the relevant sector for everyone. After 4 trading days, China's Internet sector experienced a long-lost Dayang Line, and leaders such as Pinduoduo, Ali, JD, and Tencent rose sharply, which perfectly confirmed previous research views.
Reviewing the market analysis of the China Internet sector since mid-February 2021, the sharp correction in stocks in this round is mainly the result of multiple factors such as the gradual increase in Chinese and US regulatory policies against the backdrop of stricter domestic anti-monopoly policies. Since the mid-February 2021 adjustment, the China Interconnect Index has declined by more than 54%.
We believe that the rebound in related sectors has begun, and there are still opportunities for the market in the future. It is introduced from the following aspects:
1. Outline the configuration value of the Internet section in China:
1. In terms of historical valuation, the overall valuation of the China Internet sector is at a historically low level:
Since 2019, the China Internet section has:
• The PE_TTM valuation is within the historical low of 23%; the PB valuation is within the historical low of 1%.
• The overall valuation is within an all-time low of 3%.
 
2. Absolute and relative valuation analysis are interconnected...