6 Chinese Internet Stocks Morgan Stanley Is Watching Next Month

• While shares of JD.Com Inc (ADR) JD, 58.com Inc (ADR) WUBA and SouFun Holdings Ltd SFUN gained mid-single-digit percentages since December 1, Ctrip.com International, Ltd. (ADR) CTRP surged 76 percent and Vipshop Holdings Ltd – ADR VIPS shares lost 8 percent.
• Morgan Stanley’s Robert Lin identified these five companies as well as iQiyi, which is a subsidiary of Baidu Inc (ADR) BIDU, as the “most-popular public companies” scheduled to attend the conference next month.
• Lin mentioned the top questions that are important to the investment debates of these six companies.

Morgan Stanley's Flagship China Internet and eCommerce conference is scheduled to be held during January 5-7 in Beijing, and is expected to be attended by more than 70 public and private Internet, media, and technology companies.

Analyst Robert Lin cited the top questions that are likely to be “important to the investment debates of the six most-popular public companies” that would be attending the conference.

JD.com

1. The rationales and implications behind replacing GM with net margin as one of the four KPIs for the BU heads of the core JD Mall business
2. Whether JD Finance would seek strategic investors going ahead and what are the Consumer Finance business’s pre-selection process, risk-management capability and securitization approach
3. The status of the mobile advertising initiative
4. With Tencent now contributing about 25 percent of new users, whether there have been any changes in the purchasing behavior of these users
5. Business and profitability outlook for JD Mall versus new businesses in 2016

Ctrip

1. Progress of the integration with Qunar Cayman Islands Ltd QUNR and how this would impact the company's margin profile in 2016
2. The leisure travel strategy for 2016 and how the company would gain market share quickly
3. The company’s international expansion strategy
4. The company’s M&A strategy
5. Biggest challenges for the company, given that it has dominated Chinese OTA industry

Vipshop

1. The revenue trend for in-season versus discount products in 3Q and 4Q
2. Implications on top-line growth and marketing spending of an acceleration of Vipshop App’s MAU in October and November.
3. Plans to increase marketing and user acquisition spending in 2016
4. Whether any more acquisitions of 3PL logistics companies are planned for 2016
5. The strategic direction of Vipshop's suppliers and consumer finance business

58.com

1. Revenue contribution by vertical and growth prospectus of each vertical
2. Margin outlook and drivers for 2016 for the whole company and each subsidiary
3. Operational and financial implications from the development of Ganji
4. Field sales efficiency and the optimal size for the number of customers per sales staff
5. Development strategy for 58Home

iQiyi

1. Content strategy for the next two to three years
2. Demographic distribution, paying user behavior and average spending per paying user of iQiyi’s reportedly more than 5mn paying subscribers
3. Regulatory risk of the OTT industry
4. Online video competitive landscape

SouFun

1. Progress of the Wanli acquisition
2. Expectations of better top-line growth in 2016, given the recovery of the primary property market,
3. Latest take rate for both primary and second-hand property transactions
4. Latest turnover rate for agents
5. The company’s core competitive advantages, against the backdrop of intensifying competition, to achieve higher operating efficiency than its peers and to outperform the industry