18 August 2019

E-commerce sector to see drop in profit margins, Nomura says

China’s e-commerce sector will see its profit margin decline this year amid intense competition among a small number of top players, Wendy Liu, managing director and head of China Equity Research at financial services firm Nomura, said on Friday.

Despite the pressure on earnings, the overall business will continue to expand this year, although the performance of individual stocks in the sector will not be as clear-cut as last year, Liu said.

Meanwhile, the financial and property sectors will experience a slide in revenue in the medium term, although their outlook will become brighter in the long run after structural adjustments are put in place, she said.  

Liu also said investors can expect margin recovery in the steel, paper-making and cement industries in the medium term after they have addressed their overcapacity problems.

– Contact HKEJ at [email protected]




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