CitiResearch

Jan5,2026

Pan-AsiaInternet

Pan-AsiaInternet

2026Outlook:AcceleratingAIAdoption’sImpactonMonetization&Margins

AliciaYapAC

HeadofPan-AsiaInternetResearch

alicia.yap@

+8522501-2773

PawlHwang

VijitJain

KeiichiYoneshima

TokiyaBaba

FerryWong

BrianGong

Korea

India

Japan

Japan

Asean

China

VickyWei

China

NelsonCheung

China

RyanDavis

Asean

JoshYang

Korea

HeejinLim

Korea

SanchitChandna

India

SeeAppendixA-1forAnalystCertification,ImportantDisclosuresandResearchAnalystAffiliations

CitiResearchisadivisionofCitigroupGlobalMarketsInc.(the"Firm"),whichdoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethattheFirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.Certainproducts(notinconsistentwiththeauthor’spublishedresearch)areavailableonlyon

Pan-AsiaInternetAnalysts

CountryContactDetails

AsiaPacific

AliciaYap

HeadofPanAsiaInternetResearch

+85225012773

alicia.yap@

BrianGong

ChinaInternet

+85225012747

brian.gong@

VickyWei

ChinaInternet

+85225012489

vicky.wei@

NelsonCheung

ChinaInternet

+85225012728

nelson.cheung@

FerryWong

AseanInternet

+622129249213

ferry.wong@

RyanDavis

AseanInternet

+622129249218

Ryan1.davis@

VijitJain

IndiaInternet

+912261759887

vijit.jain@

SanchitChandna

IndiaInternet

+912261759824

sanchit.chandna@

KeiichiYoneshima

JapanInternet

+81367768033

keiichi.yoneshima@

TokiyaBaba

JapanInternet

+81367764618

tokiya.baba@

PawlHwang

KoreaInternet

+82237050748

paul1.hwang@

JoshYang

KoreaInternet

+82237050723

josh.yang@

HeejinLim

KoreaInternet

+82237050768

heejin.lim@

JiminCha

KoreaInternet

+82237050741

jimin.cha@

citl

2

TableofContents

1.CITI’STAKE4-9

2ChinaInternetOutlook10-23

3.IndiaInternetOutlook24-27

4.KoreaInternetOutlook28-31

5.JapanInternetOutlook32-35

6.AseanInternetOutlook36-39

citi3

Note:*CitiResearchestimates;internetsectorreturnwascalculatedbyaveragingmajorinternetcompanies’stockpriceperformancein2025.4

CITI’STAKE

●2025performance-China’sinternetsectorledin2025witha+31%return,outpacingtheUS’s+20%,

Korea’s+14%,SEA’s+11%,Japan’s+10%,andIndia’s+9.0%,whileKOSPIrose+76%,HSI+28%,Nikkei+26%,S&P500+16%andNifty+10%.*

●ChinaInternet:AICompetition&ProductivityGains

–In2026,webelieveChina’sAIthesisislikelytobefocusedon:1)recurringrevsgrowthofcloudinfra/model

stack/inferencetokenusage;2)usertrafficturfwarbetweenAIchatbotsaskeyinternetplayersrushtocaptureAIeratrafficgatewayforfutureecosystemmonetizationand3)verticalplayersdeployingtheirself-trained

proprietarydataAIagentstostayaheadofpotentialdisruptionandseektostrengthenuserengagementandmonetizationupside.Weexpectmostinternetcompaniestoseeimprovingopleveragethroughproductivity

gainsfromAI-assistedcostoptimization,withsomeenjoyingreaccelerationoftoplinegrowthwitheffectiveAIagentdeployment.

–ThankstofastadoptionofAIassistanttools,consumersarelikelytorealizeworkandlifestyleproductivity

improvement,whichmayenablemoretimetospendonleisureandentertainmentactivities.Theongoing

demandfortravelandonlinegamingfunshouldsupportstableandresilientearningsgrowthforOTAandgamingcompaniesthatwebelievecouldprovidegoodportfoliodiversificationoffsettinghigherriskofAIhype.

–Ourtoppicks:1)Tencent,BABA-coreAIplays;2)TCOM,NTESforresilient/stableearningsgrowth;3)J&T-cross-borderexposure;4)CenturyHuatongasA-sharepick.

●IndiaInternet:ImprovingOperatingMarginsandUnitEconomics

–2026keythemesinclude:1)intensecompetitioninquickcommercetoremainhighwhileoverallprofitability

shouldfurtherimprove;2)fintechPayTmrampsupasregulatoryburdeneases;3)OTAreboundinsightthankstosupply-drivendynamicsandsustaineddemandappetite;4)autoclassifiedsridingmacrotailwinds;and5)

continuedweaknessinjobsclassifieds.Weexpectmostcompaniesunderourcoveragetocontinuetodeliver

significantexpansioninoperatingmargins,primarilydrivenbyoperatingleveragebutalsoimprovingunit

economics/contributionmarginsinselectcompanieslikeSwiggyandPaytm.Whiletherecentprogressonlaborlawreformshasprovidedmuchneededclarityonthegigeconomyregulatoryregime,wecontinuetoexpect

regulatorydevelopmentin2026,includingapotentialchangeinIndia’slawspertainingtomulti-brandretailFDIlaws.Regulatorydevelopmentinfintechshouldalsopersist.OurtoppicksareEternalandMakemytrip.

citi5

CITI’STAKE

●KoreaInternet/Gaming/Entertainment:MarketShareGains/Selective/IPMonetization

–2026keythemesinclude:i)growingpenetrationrateofecommerceasweexpectCoupangtofurthergainsharesinbothecommerceandfooddelivery;ii)ChatGPTintegrationinKakaotalkhelpscapturesearchbehavior

transitionwhileNaverisincreasingexposureofitsAI-basedsearchsummaryfeaturetodefendsearchleadership;iii)weremainselectiveongaminggivenstructuralheadwindsandintensifiedcompetitionintime&walletsharefromnon-gamingapps,continueddelayofmajorpipelinegames,whileweexpectAItopotentiallyhelpingamesdevelopmentandcost-saving;iv)K-popgrowthdriversincludecomebackofmegaIPs(BTSbyHYBE,EXObySM)andcontinuedmonetizationofmegaIP(BlackPinkbyYG);accelerationinmonetizationofrookieIPssuchas

BabyMonster(YG),Cortis(HYBE),NCTWISH(SM);andlocalizedIps’successfulexecutioninwesternmarket

(KatseyebyHYBE,GirlsetbyJYP).OurpreferredpicksareCoupangforinternet/ecommerce,KraftonforgamingandHYBEforK-popentertainment.

●JapanInternet/Gaming:AIaBlessingandaCurse/GrowthDrivenbyGlobalIP

–2026keythemesinclude:i)onlineadsmarketshouldremainsolid,drivenbyvideoadsandstaffingads,while

searchadsshouldstagnate;ii)weexpectmid-single-digitgrowthforecommercemarketwithAI-powered

recommendationtoencouragepurchasingwhilemonitoringmacrotrends;iii)foronlinegames,weexpect

catalyststostilldependonnewhittitleswhilethespreadofexternalpaymentsshouldsupportincreased

profitability.WhilecompaniesareusingAItopromoteefficientdevelopment,webelieveprofitabilityimprovementremainsatearlystages.OurtoppicksareRecruitandNintendo.

●ASEANInternet:RisingPenetrationRateDrivesGrowthYetAttractingCompetition

–2026keythemesinclude:i)SEAasanAIdatacenterhubshouldfurthersupportstructuralgrowthopportunityofthedigitaleconomy;ii)ecommercecompetitioncouldintensifybetweenShopeeandTikTok;iii)anybiggertractionofAIchatbotassistantcouldthreatenanddisruptecommerceplatforms;iv)earlystageofpilottestingof

autonomousdrivingtechnology;v)alleyesonpotentialmarketconsolidationfromapossibleGrab/GoTodeal

materializing.WelikebothGrabandGoToasourASEANinternetpicksforimprovingoperatingefficienciesandpotentialsynergiesfromconsolidation.

cititral.PricesasofcloseonDec31,2025.6

Pan-AsiaInternet:ComparableValuations(I)

CompanyName

ReutersTicker

Analyst

Price

Currency

Price

MktCap

USD$'m

Risk/

Rating

Target

Price

ETR

%

P/E

P/S

PEG

2025E

2026E

2026E

2027E

2026E

2027E

SoutheastAsiaInternet

Bukalapak

BUKA.JK

RyanDavis

IDR

158.00

977

1

200.00

26.6%

20.8

16.4

2.8

2.6

na

0.73

GoToGojekTokopedia

GOTO.JK

FerryWong,CFA

IDR

64.00

4,378

1H

110.00

71.9%

na

58.4

3.6

3.1

na

na

GrabHoldingsLtd

GRAB.O

AliciaYap,CFA

USD

4.99

20,394

1

7.20

44.3%

na

81.2

5.1

4.3

na

1.28

Sea

SE.N

AliciaYap,CFA

USD

127.57

75,524

1

200.00

56.8%

39.2

32.3

3.0

2.6

0.90

1.05

Average

30.0

47.1

3.6

3.2

0.90

1.02

Korea

CJENM

035760.KQ

HeejinLim

KRW

64,600.00

983

3

43,000.00

-33.4%

17.7

17.1

0.3

0.2

na

0.88

Coupang

CPNG.N

PaulHwang

USD

23.59

43,091

1

28.00

18.7%

na

56.3

1.1

1.0

na

0.49

Kakao

035720.KS

PaulHwang

KRW

60,100.00

18,457

2

64,000.00

6.6%

74.7

57.9

3.1

2.9

0.40

2.06

Krafton

259960.KS

JoshYang

KRW

246,000.00

8,095

1

440,000.00

78.9%

13.2

11.0

3.3

3.2

-1.41

0.99

Naver

035420.KS

PaulHwang

KRW

242,500.00

26,403

3

200,000.00

-16.9%

22.6

19.1

3.0

2.8

10.15

1.19

NCSoft

036570.KS

JoshYang

KRW

201,500.00

3,013

1

260,000.00

31.2%

na

15.5

2.2

2.2

na

0.08

Netmarble

251270.KS

JoshYang

KRW

48,250.00

2,879

3

50,000.00

3.6%

18.6

13.3

1.4

1.4

0.07

0.58

PearlAbyss

263750.KQ

JoshYang

KRW

37,400.00

1,668

3

28,000.00

-25.1%

20.6

na

6.9

4.6

-0.22

na

StudioDragon

253450.KQ

HeejinLim

KRW

42,750.00

892

3

34,000.00

-20.5%

35.2

25.2

1.8

1.7

1.51

0.82

Average

24.5

24.6

2.3

2.0

-0.29

0.80

India

Affle3iLtd

AFFL.NS

VijitJain

INR

1,799.40

2,814

1

2,200.00

22.3%

55.8

42.0

8.0

6.6

1.92

1.38

CarTradeTech

CART.BO

VijitJain

INR

2,829.70

1,506

1

3,560.00

25.8%

68.6

50.0

15.8

13.9

1.35

1.77

Delhivery

DELH.NS

VijitJain

INR

403.85

3,362

1

525.00

30.0%

na

49.9

2.6

2.2

na

0.40

Eternal

ETEA.BO

VijitJain

INR

277.95

28,141

1

440.00

58.3%

na

na

3.1

2.2

na

na

FsnE-CommerceVentures

FSNE.BO

VijitJain

INR

265.00

8,441

3

175.00

-34.0%

na

na

6.6

5.5

na

na

InfoEdge

INED.BO

VijitJain

INR

1,333.00

9,603

3

1,300.00

-1.9%

na

94.8

26.7

23.6

na

1.21

JustDial

JUST.BO

VijitJain

INR

722.50

684

1

1,060.00

46.7%

10.2

10.1

4.8

4.5

1.43

2.15

MakeMyTrip

MMYT.O

VijitJain

USD

82.12

7,814

1

108.00

31.5%

na

81.5

7.4

6.2

na

1.64

One97Communications

PAYT.BO

VijitJain

INR

1,297.00

9,230

1

1,500.00

15.7%

na

56.5

8.6

7.1

na

0.62

Swiggy

SWIG.NS

VijitJain

INR

386.25

11,148

1

485.00

25.6%

na

na

3.7

3.1

na

na

Average

44.9

55.0

8.7

7.5

1.57

1.31

Japan

BandaiNamcoHoldings

7832.T

TokiyaBaba

JPY

4,172.00

17,239

1

6,000.00

46.3%

20.4

19.2

2.0

1.9

2.62

2.31

CyberAgent

4751.T

KeiichiYoneshima

JPY

1,338.00

4,330

1

2,100.00

58.3%

19.5

15.0

0.7

0.7

0.35

1.15

K

2371.T

KeiichiYoneshima

JPY

2,312.00

2,920

1

3,200.00

40.8%

22.9

19.9

4.4

3.9

2.72

1.06

KonamiGroup

9766.T

TokiyaBaba

JPY

21,330.00

18,456

1

26,200.00

23.8%

32.6

28.4

5.7

5.6

1.64

2.85

LYCorp

4689.T

KeiichiYoneshima

JPY

417.20

18,244

1

610.00

47.9%

17.5

16.0

1.2

1.1

1.35

1.71

Nexon

3659.T

TokiyaBaba

JPY

3,827.00

19,380

2

3,200.00

-15.3%

33.7

27.6

6.5

6.3

-4.57

2.17

Nintendo

7974.T

TokiyaBaba

JPY

10,595.00

78,737

1

14,200.00

35.8%

36.0

25.8

4.8

4.3

1.79

0.88

RakutenGroup

4755.T

KeiichiYoneshima

JPY

1,004.00

13,902

2H

950.00

-5.4%

na

63.8

0.8

0.7

na

na

RecruitHoldings

6098.T

KeiichiYoneshima

JPY

8,847.00

79,455

1

11,000.00

24.6%

28.9

25.6

3.3

3.1

1.87

1.77

SegaSammyHoldings

6460.T

TokiyaBaba

JPY

2,448.00

3,285

1

4,000.00

65.6%

12.0

11.6

1.1

1.0

2.82

1.85

SoftBankCorp.

9434.T

KeiichiYoneshima

JPY

214.80

65,475

1

240.00

15.7%

17.7

15.9

1.4

1.3

1.61

1.39

SoftBankGroup

9984.T

KeiichiYoneshima

JPY

4,400.00

160,044

1H

6,025.00

37.2%

8.3

18.1

3.2

3.1

0.26

-0.34

SquareEnixHoldings

9684.T

TokiyaBaba

JPY

2,859.50

6,581

3

2,300.00

-18.1%

35.2

31.7

3.3

3.3

1.64

4.24

Average

23.6

22.8

2.6

2.5

0.61

1.22

citientral.PricesasofcloseonDec31,2025.7

ChinaInternet:ComparableValuations(II)

CompanyName

ReutersTicker

Analyst

Price

Currency

Price

MktCap

USD$'m

Risk/

Rating

Target

Price

ETR

%

P/E

P/S

PEG

2025E

2026E

2026E

2027E

2026E

2027E

CategoryLeader

AlibabaGroupHolding

BABA.N

AliciaYap,CFA

USD

146.58

349,757

1

225.00

54.9%

19.8

17.2

2.1

1.9

-5.09

0.89

Alibaba

9988.HK

AliciaYap,CFA

HKD

142.80

350,245

1

223.00

57.5%

19.8

17.0

2.1

1.9

-5.93

0.84

B

BIDU.O

AliciaYap,CFA

USD

130.66

44,917

1

181.00

38.5%

16.0

15.4

2.3

2.1

-1.31

1.05

NetEase

NTES.O

AliciaYap,CFA

USD

137.62

87,141

1

161.00

18.7%

15.9

15.5

5.1

4.8

1.69

2.57

JD.com

JD.O

AliciaYap,CFA

USD

28.70

45,741

1

44.00

57.8%

10.0

7.7

0.2

0.2

-1.18

0.30

Meituan

3690.HK

AliciaYap,CFA

HKD

103.30

81,003

2H

115.00

11.3%

na

na

1.4

1.3

na

na

TencentHoldings

0700.HK

AliciaYap,CFA

HKD

599.00

701,931

1

751.00

26.2%

18.9

16.8

6.1

5.6

1.16

1.53

PDDHoldingsInc

PDD.O

AliciaYap,CFA

USD

113.39

160,974

1H

170.00

49.9%

10.3

8.5

2.5

2.3

1.70

0.44

TGroupLtd

TCOM.O

BrianGong

USD

71.91

47,001

1

86.00

20.0%

18.4

16.5

5.0

4.6

2.42

1.68

Average

16.1

14.3

3.0

2.7

-0.82

1.16

Ecommerce

AlibabaGroupHolding

BABA.N

AliciaYap,CFA

USD

146.58

349,757

1

225.00

54.9%

19.8

17.2

2.1

1.9

-5.09

0.89

Baozun

BZUN.O

AliciaYap,CFA

USD

2.66

154

1

4.80

80.5%

37.6

6.5

0.1

0.1

na

0.04

JD.com

JD.O

AliciaYap,CFA

USD

28.70

45,741

1

44.00

57.8%

10.0

7.7

0.2

0.2

-1.18

0.30

PDDHoldingsInc

PDD.O

AliciaYap,CFA

USD

113.39

160,974

1H

170.00

49.9%

10.3

8.5

2.5

2.3

1.70

0.44

VipshopHoldings

VIPS.N

AliciaYap,CFA

USD

17.69

8,721

2

21.00

20.4%

7.2

6.5

0.6

0.5

1.19

0.66

Average

17.0

9.3

1.1

1.0

-0.85

0.46

OnlineTravel

TongchengTravelHoldings

0780.HK

BrianGong

HKD

22.44

6,773

1

28.00

24.8%

13.8

12.4

2.2

2.1

0.85

1.01

TGroupLtd

TCOM.O

BrianGong

USD

71.91

47,001

1

86.00

20.0%

18.4

16.5

5.0

4.6

2.42

1.68

Average

21.9

16.2

2.7

2.5

0.83

1.03

Verticals

Autohome

ATHM.N

BrianGong

USD

22.26

2,637

2

26.00

24.6%

11.4

11.2

2.7

2.7

-1.44

5.33

DiDiGlobal

DIDIY.PK

AliciaYap,CFA

USD

5.28

24,586

1H

8.30

57.2%

22.5

27.7

0.7

0.7

2.56

1.61

FullTruckAlliance

YMM.N

BrianGong

USD

10.73

11,222

1H

15.00

41.4%

16.5

14.9

5.9

5.2

1.08

0.83

Kanzhun

BZ.O

BrianGong

USD

20.38

9,810

1

26.00

27.6%

18.6

16.6

7.2

6.5

0.94

1.20

Yixin

Average

2858.HK

VickyWei,CFA

HKD

2.56

2,232

1

3.50

40.2%

10.9

15.9

8.6

15.2

1.2

2.8

1.1

2.6

0.38

-0.16

0.50

1.61

Digitalcontent

ChinaLiterature

0772.HK

VickyWei,CFA

HKD

32.98

4,329

1

38.00

15.2%

21.8

19.5

3.9

3.8

1.36

1.94

iQIYI

IQ.O

VickyWei,CFA

USD

1.92

1,849

1

2.70

40.6%

na

24.1

0.5

0.5

na

0.15

TencentMusicEntertainment

TME.N

AliciaYap,CFA

USD

17.53

27,152

1

29.00

66.5%

19.3

17.6

5.2

4.6

1.22

1.42

Average

17.9

19.1

3.4

3.2

1.12

-0.20

Advertising/Portal

Sohu

SOHU.O

AliciaYap,CFA

USD

15.64

470

1

22.00

40.7%

na

na

0.7

0.7

na

na

So-YoungInternational

SY.O

NelsonCheung

USD

2.56

255

1H

5.20

103.1%

na

na

0.9

0.6

na

na

Weibo

WB.O

AliciaYap,CFA

USD

10.22

2,502

1

12.00

25.4%

5.8

5.8

1.6

1.5

-2.90

2.02

ZHIHU

Average

ZH.N

VickyWei,CFA

USD

3.28

295

1H

6.00

82.9%

39.6

34.4

86.9

35.0

0.7

1.2

3.9

1.7

na

-2.90

-8.28

-2.06

Livestreaming

HelloGroupInc

MOMO.O

BrianGong

USD

6.55

1,029

2H

6.80

8.4%

8.2

7.9

0.8

0.8

-1.26

0.90

JOYY

JOYY.O

BrianGong

USD

64.76

3,301

1

70.00

13.9%

12.1

10.8

1.5

1.4

1.55

0.94

Huya

HUYA.N

NelsonCheung

USD

2.88

684

1

4.20

50.3%

34.9

22.6

0.7

0.7

-2.90

0.44

Douyu

DOYU.O

NelsonCheung

USD

6.80

211

2

7.60

11.8%

na

na

0.4

0.5

na

na

Kuaishou

1024.HK

BrianGong

HKD

63.95

35,492

1

88.00

37.6%

12.2

10.9

1.7

1.6

0.84

0.77

NewbornTown

9911.HK

NelsonCheung

HKD

11.19

2,032

1H

16.00

43.0%

11.7

11.0

1.6

1.4

0.39

0.77

Bilibili

BILI.O

BrianGong

USD

24.59

8,215

2H

27.00

9.8%

29.9

25.0

2.3

2.2

na

1.40

Average

18.2

14.7

1.3

1.2

-0.28

0.87

ChinaInternet:ComparableValuations(III)

cititral.PricesasofcloseonDec31,2025.8

CompanyName

ReutersTicker

Analyst

Price

Currency

Price

MktCap

USD$'m

Risk/

Rating

Target

Price

ETR

%

P/E

P/S

PEG

2025E

2026E

2026E

2027E

2026E

2027E

Gaming/softwareservices

37InteractiveEntertainment

002555.SZ

NelsonCheung

CNY

23.60

7,465

1

25.50

13.1%

16.5

14.8

3.1

3.0

1.19

1.21

CenturyHuatong

002602.SZ

NelsonCheung

CNY

17.06

17,980

1

22.00

29.0%

23.6

15.4

2.7

2.6

0.15

0.55

ChengduB-RayMedia

600880.SS

NelsonCheung

CNY

4.94

772

3H

3.20

-35.0%

na

na

7.7

7.1

na

na

ChineseMedia

600373.SS

NelsonCheung

CNY

9.34

1,826

3

9.00

-0.4%

15.2

10.7

1.8

1.8

0.54

0.48

G-Bits

603444.SS

NelsonCheung

CNY

423.85

4,366

1

550.00

34.1%

17.2

15.4

4.9

4.9

0.38

2.26

GiantNetwork

002558.SZ

NelsonCheung

CNY

43.29

11,976

1

42.00

-2.1%

42.0

22.9

11.1

10.6

0.68

0.55

IGG

0799.HK

NelsonCheung

HKD

3.81

561

1

5.30

44.4%

7.9

5.1

0.7

0.7

0.40

0.18

Kingnet

002517.SZ

NelsonCheung

CNY

21.87

6,681

1

31.00

43.1%

22.5

15.5

6.7

6.1

0.61

0.57

NetEase

NTES.O

AliciaYap,CFA

USD

137.62

87,141

1

161.00

18.7%

15.9

15.5

5.1

4.8

1.69

2.57

Ourpalm

300315.SZ

NelsonCheung

CNY

4.94

1,913

3H

1.50

-69.6%

na

na

19.5

19.4

na

na

PerfectWorld

002624.SZ

NelsonCheung

CNY

16.39

4,546

2

15.50

-4.2%

31.3

18.2

4.1

3.8

na

0.43

ShenzhenZQGameCo

300052.SZ

NelsonCheung

CNY

12.56

470

3H

5.00

-60.2%

na

na

14.9

14.1

na

na

XD

2400.HK

NelsonCheung

HKD

64.85

4,124

2H

82.00

27.1%

18.1

17.2

4.2

4.2

0.50

17.67

YOOZOOInteractive

002174.SZ

NelsonCheung

CNY

12.24

1,721

3H

8.00

-33.5%

42.9

26.1

7.2

7.2

na

0.70

Average

27.3

20.4

5.3

5.4

0.82

2.16

MediaandEntertainment

BeijingEnlightMedia

300251.SZ

VickyWei,CFA

CNY

16.38

6,871

1H

23.00

41.0%

20.6

52.4

21.7

19.5

0.27

-1.49

DamaiEntertainmentHoldings

1060.HK

VickyWei,CFA

HKD

0.95

3,647

1

1.40

47.4%

29.9

24.8

3.0

2.7

0.75

1.81

FocusMedia

002027.SZ

VickyWei,CFA

CNY

7.37

15,219

1

10.00

40.7%

19.4

18.3

8.0

7.7

1.69

3.89

MangoExcellentMedia

300413.SZ

VickyWei,CFA

CNY

24.42

6,532

1

31.00

27.8%

33.2

26.8

3.2

2.9

2.83

1.30

MaoyanEntertainment

1896.HK

VickyWei,CFA

HKD

6.94

1,036

1

9.30

38.6%

13.2

10.4

1.5

1.4

0.27

0.53

ZhejiangHuaceFilm&TV

300133.SZ

VickyWei,CFA

CNY

8.32

2,246

1

9.00

8.8%

28.4

23.9

5.2

4.8

0.45

1.61

Average

32.2

34.2

5.3

5.0

1.01

1.31

Softwareservices/InternetInfrastructure

360SecurityTechnology

601360.SS

NelsonCheung

CNY

11.17

11,179

2

11.00

0.3%

na

na

9.1

8.8

na

na

BeijingKingsoftOfficeSoftware

688111.SS

BrianGong

CNY

307.07

20,337

1

410.00

33.5%

74.6

59.1

22.2

20.2

3.07

2.58

Kingsoft

3888.HK

BrianGong

HKD

28.44

5,117

1

44.00

55.4%

19.3

16.9

2.8

2.5

2.08

0.93

KingsoftCloud

KC.O

BrianGong

USD

10.34

3,124

1

20.00

93.4%

na

na

1.8

1.6

na

na

LakalaPayment

300773.SZ

VickyWei,CFA

CNY

28.48

3,163

3

22.00

-21.7%

41.5

33.8

3.7

3.6

1.13

2.13

Weimob

2013.HK

BrianGong

HKD

1.84

936

3

1.55

-15.8%

na

na

3.0

2.8

na

na

YeahkaLimited

9923.HK

VickyWei,CFA

HKD

7.99

474

1H

10.00

25.2%

14.3

12.7

0.7

0.7

5.98

0.75

YouzanTechnology

8083.HK

BrianGong

HKD

0.14

581

3H

0.05

-64.0%

44.3

17.0

2.8

2.6

0.65

0.22

Average

32.8

26.3

4.3

3.8

-0.02

1.28

Logistics

ANE

9956.HK

BrianGong

HKD

11.82

1,792

1H

10.20

-11.1%

12.7

11.4

0.9

0.8

0.87

0.96

J&TExpress

1519.HK

BrianGong

HKD

10.45

11,947

1

12.00

14.8%

37.8

21.8

1.0

0.9

0.50

0.36

JDLogistics

2618.HK

BrianGong

HKD

11.42

9,768

1

18.00

57.6%

8.1

6.8

0.3

0.3

0.82

0.47

KLNLogistics

0636.HK

BrianGong

HKD

7.09

1,647

1H

8.50

23.0%

10.0

9.3

0.2

0.2

-2.16

1.29

S.F.Holding

002352.SZ

BrianGong

CNY

38.32

26,297

1

55.00

45.1%

17.8

16.0

0.6

0.5

2.68

1.51

SFIntra-City

9699.HK

NelsonCheung

HKD

11.00

1,292

1

22.00

100.0%

29.6

19.1

0.4

0.3

0.37

0.37

STOExpress

002468.SZ

BrianGong

CNY

13.42

2,937

1

20.00

49.6%

16.9

13.0

0.4

0.3

0.72

0.55

YTOExpress

600233.SS

BrianGong

CNY

16.42

8,036

2

18.50

14.9%

14.1

11.6

0.7

0.6

1.39

0.81

YUNDAHolding

002120.SZ

BrianGong

CNY

6.74

2,794

3

6.36

-2.7%

10.4

9.7

0.3

0.3

2.65

1.52

ZTOExpress(Cayman)

ZTO.N

BrianGong

USD

20.89

16,619

1

22.60

11.1%

13.6

12.3

2.3

2.1

-29.52

1.20

Average

16.8

13.2

0.8

0.7

-1.51

0.91

ChinaRide-Hailing

CaoCao

2643.HK

AliciaYap,CFA

HKD

30.00

2,179

1H

70.00

133.3%

na

56.4

0.5

0.4

na

na

DiDiGlobal

DIDIY.PK

AliciaYap,CFA

USD

5.28

24,586

1H

8.30

57.2%

22.5

27.7

0.7

0.7

2.56

1.61

Average

22.5

42.1

0.6

0.5

2.56

1.61

Source:CitiResearchestimates,dataCentral.PricesasofcloseonDec31,2025.9

Pan-AsiaInternet:PricePerformancein2025

0.4%

1.7%

2.7%

2.1%

0.5%

0.4%

0.0%

0.1%

-1.9%0.0%1.3%2.5%0.5%1.0%

-0.1%

-0.6%1.5%

-0.8%

-3.6%0.1%3.5%

-2.7%1.1%

-2.3%1.6%0.6%4.2%

-2.5%

-1.5%

-0.1%

-2.7%

-0.8%

-2.4%

-3.1%

-0.9%

-3.4%

4.6%

-8.7%

-0.9%0.7%2.4%

-10.5%

-8.4%

3.5%

-1.7%

-6.5%

-4.2%

-0.6%1.7%

-8.2%5.2%

-5.2%

-20.2%

-8.8%

-4.0%

-3.8%

-16.2%

-8.4%

8.3%

-7.6%

-0.8%7.7%0.3%

-9.0%0.0%

-8.7%10.5%

-4.5%0.2%

15.0%

-2.2%

2.1%

-5.8%15.3%13.1%17.9%0.8%

-0.1%

-10.1%5.5%15.5%

-7.1%

-24.7%

-9.7%

-9.1%

-28.6%4.6%

-10.3%

-17.3%

-15.3%

-6.7%

-1.3%

-26.7%

-17.1%

-7.6%

-14.7%

-12.4%

-4.7%

-8.9%

-21.8%18.5%

-21.4%11.1%

-15.9%1.5%

-12.3%

-13.0%

-8.7%

91.6%

87.5%

61.3%

61.0%

57.3%

44.1%

39.6%

35.0%

30.9%

26.4%

22.1%

21.9%

20.3%

20.2%

16.9%

15.9%

14.4%

10.4%

10.0%

8.0%

7.3%

5.7%

1.5%

0.3%

-0.5%

-0.7%

-4.5%

-6.7%

-8.6%

-20.4%

-20.6%

-21.3%

-23.6%

-26.9%

-28.1%

-28.8%

SoftBankGroupCarTradeTech

FsnE-CommerceVenturesNexon

Kakao

KonamiGroup

SquareEnixHoldingsPearlAbyss

One97CommunicationsBukalapak

CyberAgent

Naver

CJENMSea

RakutenGroupDelhivery

Nintendo

BandaiNamcoHoldingsNCSoft

SoftBankCorp.

Coupang

GrabHoldingsLtdAffle3iLtd

Eternal

LYCorp

StudioDragonK

Netmarble

GoToGojekTokopediaSegaSammyHoldingsRecruitHoldings

Krafton

InfoEdge

MakeMyTripJustDial

Swiggy

1week1mth3mthYTD

ReutersTicker

CompanyName

9984.T

CART.BOFSNE.BO3659.T

035720.KS9766.T

9684.T

263750.KQPAYT.BOBUKA.JK

4751.T

035420.KS

035760.KQSE.N

4755.T

DELH.NS7974.T

7832.T

036570.KS9434.T

CPNG.N

GRAB.O

AFFL.NS

ETEA.BO4689.T

253450.KQ2371.T

251270.KSGOTO.JK6460.T

6098.T

259960.KSINED.BO

MMYT.OJUST.BOSWIG.NS

CompanyName

3mth

GiantNetwork

CenturyHuatong

So-YoungInternationalNewbornTown

Yixin

XD

DamaiEntertainmentHoldingsG-Bits

AlibabaGroupHoldingBeijingEnlightMediaHuya

LakalaPayment

Kingnet

Douyu

PerfectWorldB

JOYY

Kuaishou

TencentMusicEntertainment

NetEase

37InteractiveEntertainment

Kanzhun

TencentHoldingsBilibili

VipshopHoldingsChinaLiterature

TongchengTravelHoldings

PDDHoldingsIncDiDiGlobal

FocusMedia

TGroupLtdFullTruckAllianceKingsoftCloud

iQIYI

IGG

MangoExcellentMedia

KingsoftJD.comCaoCaoMeituan

ReutersTicker

002558.SZ

002602.SZSY.O

9911.HK2858.HK

2400.HK1060.HK603444.SSBABA.N

300251.SZHUYA.N

300773.SZ002517.SZDOYU.O

002624.SZBIDU.O

JOYY.O

1024.HKTME.N

NTES.O

002555.SZBZ.O

0700.HKBILI.O

VIPS.N0772.HK

0780.HKPDD.O

DIDIY.PK002027.SZTCOM.O

YMM.NKC.O

IQ.O

0799.HK300413.SZ3888.HKJD.O

2643.HK3690.HK

YTD

241.1%

231.9%

218.8%

200.8%

196.5%

157.9%

100.0%

93.7%

74.2%

73.5%

61.1%

60.9%

60.7%

58.7%

58.7%

55.0%

54.7%

54.7%

54.4%

54.3%

50.9%

47.7%

43.6%

35.8%

31.3%

30.9%

23.3%

16.9%

15.5%

4.8%

4.7%

-0.8%

-1.4%

-4.5%

-4.7%

-9.2%

-15.5%

-17.2%

-28.5%

-31.9%

week

-6.6%0.3%

-8.6%

-2.4%

-2.7%0.5%8.0%

-2.8%

-2.3%1.8%

-2.4%25.7% 0.3%

-3.1%

-0.4%5.9%

-1.7%

-1.0%

-0.5%0.3%5.4%

-3.0%

-0.7%

-0.7%

-9.7%2.0%0.0%0.0%

-4.0%3.2%

-0.5%

-3.3%

-3.1%1.1%1.6%3.1%0.1%

-1.6%2.7%0.1%

-4.2%

-17.6%

-33.9%

-14.3%

-6.9%

-20.2%

-11.2%

-25.4%

-18.0%

-15.4%

-13.5%17.0%

-22.1%

-9.6%

-14.5%

-0.8%10.5%

-24.4%

-24.9%

-9.5%8.7%

-12.8%

-9.7%

-12.5%

-9.9%

-16.5%

-2.4%

-14.2%

-15.1%

-8.6%

-4.4%

-17.3%

-30.7%

-25.0%

-15.3%

-31.7%

-17.9%

-18.0%

-44.4%

-1.1%

5.2%

-5.2%

-13.2%18.3%

5.8%

-8.2%6.7%

-1.2%

-6.8%

-0.2%1.1%

28.6%

-2.0%

-4.6%15.7%11.8%

2.6%

-5.7%

-5.0%

-0.3%14.7%

-7.8%

-2.0%

-7.6%

-9.9%

-12.1%2.4%

-2.3%

-1.3%0.3%2.8%

-5.5%

-16.3%

-12.3%

-0.3%

-5.8%

-0.7%

-3.8%

-33.5%0.8%

1mth

1

citi10

ChinaInternetOutlook

AliciaYap

BrianGong

VickyWei

NelsonCheung

alicia.yap@

brian.gong@

vicky.wei@

nelson.cheung@

+8522501-2773

+8522501-2747

+8522501-2742

+8522501-2728

citi11

1H26Outlook:AICompetition&ProductivityGains

AIcloudinfra,chatbotsandagents

.In2026,webelieveChina’sAIthesisislikelytobefocusedon:1)recurringrevsgrowthofcloud

infra/modelstack/inferencetokenusage;2)user

trafficturfwarbetweenAIchatbotsaskeyinternet

playersrushtocaptureAIeratrafficgatewayforfutureecosystemmonetizationand3)verticalplayers

deployingtheirself-trainedproprietarydataAIagentstostayaheadofpotentialdisruptionandseekto

strengthenuserengagementandmonetizationupside.

.Weexpectmostinternetfirmstoseeimprovingop

leveragethroughproductivitygainsfromAI-assistedcostoptimization,withsomeenjoyingreaccelerationoftoplinegrowthwitheffectiveAIagentdeployment.

Investmentrisks

.Geopoliticalriskpersists,AIsupplychainconstraints,mutedconsumptionsentimentabsenceofstimuluspolicy;ongoingmerchantsupportmeasuresweighonprofit,lockinconsumerwalletsharethrough

membershipinvestment,intensifiedcompeti