Flash | 20 Feb 2025 20:00:56 ET │ 11 pages China Communication Infrastructure Quick Read-Through from 3QFY25 BABA Result; Cementing Our View on Industry Capex Up-Cycle; IDC/Optics Name to Be Beneficiary CITI'S TAKE Alibaba (covered by Alicia Yap) capex increasing 259% YoY in 3QFY25 and mgmt. comments that total capex in the next 3 years will exceed total capex over the past decade (~Rmb378bn) cemented our constructive view on AI capex up-cycle ahead, yet we also see potential correction after GDS/VNET 100%+ ...

February 21, 2025 01:19 PM GMT US Economics Weekly | North America Another fiscal scramble The deadline is approaching for a potential government shutdown. We expect a shutdown would lead to ~0.1pp per week direct drag on quarterly annualized real GDP growth, but this should reverse once the shutdown ends. The debt ceiling will also be topical for QT. Key Takeaways Exhibit 1: Upcoming fiscal deadlines | Date | Action needed | Votes required | Consequence if not | | --- | --- | --- | --- | | March 14 | Conti ...

21 February 2025 | 7:21AM CST Optical Transceivers: BABA's cloud capex guidance a positive for transceiver demand; Buy HG Tech Alibaba (BABA, covered by Ronald Keung, report link) noted its cloud capex in the coming three years will exceed its total cloud capex in the past decade. This is positive for China datacom optical transceiver makers, in our view. Besides BABA, China telecom operators have also seen an increase in cloud and IDC activities following their deployment of Deepseek on their cloud platfor ...

Microsoft has unveiled a quantum computing chip which uses topological qubits and could simplify processes of limiting and correcting error, currently a major obstacle to commercializing QC. We think one promising application for QC is quantum machine learning for much more efficient deep learning. Key Takeaways Microsoft develops quantum computing chip: Microsoft (covered by Keith Weiss) announced on February 19 that it had developed a chip for use in quantum computing, a promising technology hoped to driv ...

21 February 2025 NetEase (NTES US) FINANCIALS AND RATIOS (CNY) | Year to | 12/2024a | 12/2025e | 12/2026e | 12/2027e | | --- | --- | --- | --- | --- | | HSBC EPS | 51.86 | 57.99 | 63.98 | 69.44 | | HSBC EPS (prev) | 49.56 | 56.26 | 62.91 | na | | Change (%) | 4.6 | 3.1 | 1.7 | na | | Consensus EPS | 49.24 | 54.69 | 59.50 | 60.85 | | PE (x) | 14.6 | 13.1 | 11.9 | 10.9 | | Dividend yield (%) | 2.5 | 2.0 | 2.2 | 2.5 | | EV/EBITDA (x) | 14.2 | 12.4 | 10.7 | 9.6 | | ROE (%) | 25.5 | 25.5 | 24.8 | 23.5 | 52-WEEK ...

Summary of Key Points from the Conference Call Company and Industry - **Company**: Alibaba Group (BABA) - **Industry**: Technology and Investment in China Core Insights and Arguments - **Earnings Performance**: Alibaba's recent results significantly exceeded expectations, indicating strong operational performance and market confidence [2] - **Capital Expenditure**: The announcement of increased capital expenditures surprised the market positively, suggesting a robust growth strategy [2] - **China's Technology Leadership**: There is a growing belief that China can lead in the AI-driven global technology competition, which should be recognized by global investors [2][3] - **Investor Sentiment**: Increased investor conviction in China's investibility as a technology leader is anticipated, with a shift in valuation expectations for MSCI China from 8-10x to 10-12x forward P/E ratios [3] - **Return on Equity (ROE)**: Expected improvements in MSCI China's ROE due to corporate self-help initiatives, better equity universe composition, and technology endorsements [3] Additional Important Information - **Valuation Shift**: The anticipated valuation shift is expected to compress the discount of MSCI China compared to emerging markets, potentially converging within the next 12 months [3] - **Market Dynamics**: The report emphasizes the importance of diligent corporate strategies and the evolving landscape of technology investments in China [3] - **Research Integrity**: Morgan Stanley acknowledges potential conflicts of interest due to its business relationships with companies covered in its research [4] This summary encapsulates the essential insights from the conference call, highlighting Alibaba's strong performance, the optimistic outlook for China's technology sector, and the anticipated shifts in investor sentiment and valuations.

FICC Research Economics 21 February 2025 US Outlook 3.5 will turn heads at the FOMC Longer-run inflation expectations jumped to 3.5%, their highest level since 1995, and surveys point to some cooling in activity, on tariff fears. This complicates the FOMC's policy. The minutes of the January meeting indicate that participants are in no rush to adjust the policy rate. +1 212 526 8536 colin.johanson@barclays.com BCI, US Please see analyst certifications and important disclosures beginning on page 10. Complete ...

Asia Pacific Equity Research 21 February 2025 This material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services within the territory of Mainland China. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan. Shenzhen Inovance Technology Co. Ltd - A JPM China Opportunities Forum Takeaways: Cycle inflection gaining traction, humanoid robot development underway Shenzhen In ...

North America Equity Research 21 February 2025 J P M O R G A N Tariffs & Sector Implications U.S. Equity Thematic Research Since President Trump took office, trade policy announcements have been rapidly evolving, with significant implications across sectors. Key developments include: (1) Potential 25% tariffs on Canada and Mexico; (2) 10% additional tariffs on China; (3) A 25% tariff on all steel and aluminum imports; (4) Intentions to impose further tariffs on specific sectors, including pharmaceuticals, s ...

February 21, 2025 05:37 AM GMT Enterprise Storage | North America CQ4 Storage Preview: Few Multiple Expansion Catalysts Into Storage Prints Our checks and survey results point to a healthier storage spend environment, although we are hesitant on any meaningful acceleration. Most cautious PSTG into print on FY26 guide risk. NTNX our preference for LT time horizon, but see little catalysts into print. Key Takeaways Healthier spend environment, although we lean cautious on any meaningful acceleration. Checks a ...