China's Growth Opportunities and Offshore Investing
Great supply side reform in China Internet
Reduced Competition
(3,000)
Meituan Select Quarterly Operating
Losses (Rmb mn)
|||||||
Significant improvement in core
business profitability
Meituan Food Delivery OPM
4.3%
2.6%
8.4%
2019
2020
2021
Improved capital allocation
Tencent announced distribution of
JD shares and divestment of Sea in
Dec-21, and has stepped up
buyback YTD
(5.800)
(5.500)
(6,000)
(6,800) (7,100)
(6,600)
Pinduoduo Non-GAAP Net Margin
15%
4020
1021 2021 3021 4021 1022 2022e
-5%
2019
2020
2021
Alibaba upsized its buyback
program to US$25bn in Mar-22
# of Gaming Companies Deregistered
-14%
9,705
18,710
18,000
17,000
Kanzhun Non-GAAP Net Margin
20%
JD announced a US$2bn special
dividend in May-22
8,000
-15%
-47%
2019
2020
2021
2018
2019
2020
2021
4M22
Source: (LHS) Company data, JPMAM estimates; (Middle) Company Annual Reports; (RHS) Company announcements. Data as of May 2022. The securities above are shown for illustrative purposes
only. Their inclusion should not be interpreted as a recommendation to buy or sell. GAAP -Generally Accepted Accounting Principles
*View entire presentation