Country Daily
China Internet Online Travel Agencies / Alibaba Group / Sunny Optical
Analyst
Key Indices
Top Stories
Sector Update | Internet
We expect solid travel demand during the Mid-Autumn Festival and National Day holidays, supported by the extended travel window driving longer stays, extended travel distances and stronger outbound demand. Booking data from TCOM and TT point to resilient long-haul and international travel, although overall passenger growth remains moderate. We expect OTA companies’ growth to be supported by international business expansion and AI-enhanced operating efficiency, partly offset by softer domestic travel demand and regulatory adjustments. Maintain MARKET WEIGHT. Top BUY: Trip.com.
Company Update | Alibaba Group (9988 HK/BUY/HK$108.40/Target: HK$188.00)
We attended the 2026 Alibaba Cloud Apsara Conference on 22-24 Sep 26 and the key takeaways include: a) continued scaling of its model roadmap toward 5-10T parameters, alongside new multimodal model launches; b) further expansion of its proprietary compute stack with the Zhenwu V900, Yitian CPU roadmap and Panjiu supernode; and c) continued cloud infrastructure expansion, with global DC capacity targeted to exceed 20GW by 2032. Maintain BUY with an unchanged target price of HK$188.00 (US$192.00).
Company Update | Sunny Optical (2382 HK/BUY/HK$62.70/Target: HK$106.00)
At the non-deal roadshow for Sunny held in Taipei from 22-23 September, interests primarily focused on emerging businesses such as optical interconnect components, XR and Pan-IoT, although concerns about the dwindling smartphone market remain prominent. Management’s guidance remains upbeat, expecting the fast-growing AI-driven emerging businesses and share gains to offset headwinds from the smartphone market through 2027. Maintain BUY and target price of HK$106.00, pegged to 21.1x 2027F PE.
Top Stories
Sector Update | Internet
We expect solid travel demand during the Mid-Autumn Festival and National Day holidays, supported by the extended travel window driving longer stays, extended travel distances and stronger outbound demand. Booking data from TCOM and TT point to resilient long-haul and international travel, although overall passenger growth remains moderate. We expect OTA companies’ growth to be supported by international business expansion and AI-enhanced operating efficiency, partly offset by softer domestic travel demand and regulatory adjustments. Maintain MARKET WEIGHT. Top BUY: Trip.com.
Company Update | Alibaba Group (9988 HK/BUY/HK$108.40/Target: HK$188.00)
We attended the 2026 Alibaba Cloud Apsara Conference on 22-24 Sep 26 and the key takeaways include: a) continued scaling of its model roadmap toward 5-10T parameters, alongside new multimodal model launches; b) further expansion of its proprietary compute stack with the Zhenwu V900, Yitian CPU roadmap and Panjiu supernode; and c) continued cloud infrastructure expansion, with global DC capacity targeted to exceed 20GW by 2032. Maintain BUY with an unchanged target price of HK$188.00 (US$192.00).
Company Update | Sunny Optical (2382 HK/BUY/HK$62.70/Target: HK$106.00)
At the non-deal roadshow for Sunny held in Taipei from 22-23 September, interests primarily focused on emerging businesses such as optical interconnect components, XR and Pan-IoT, although concerns about the dwindling smartphone market remain prominent. Management’s guidance remains upbeat, expecting the fast-growing AI-driven emerging businesses and share gains to offset headwinds from the smartphone market through 2027. Maintain BUY and target price of HK$106.00, pegged to 21.1x 2027F PE.
Analyst
Key Indices
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