Daiwa Says China Internet Focus Shifts From AI Spending To Monetisation

Daiwa said investor attention on China's internet sector has shifted from enthusiasm for AI spending to scrutiny of monetisation and the timing mismatch between AI investment and revenue returns, according to ETNet. The broker said investor appetite for LLM developers remains strong, but pricing and valuation are still key. It reiterated Buy ratings on Alibaba, NetEase and Tencent, and also kept Buy calls on Zhipu and MiniMax. Daiwa set target prices of HK$660 for Tencent, HK$180 for Alibaba, HK$265 for NetEase, HK$1,750 for Zhipu and HK$530 for MiniMax.