Tencent 0700 04 (Oct 21 - Dec 25)

[behappyalways]

Tencent loses over $43 billion in market value after China proposes new online gaming rules
https://www.cnbc.com/2023/12/22/tencent ... lines.html

[winston]

vested

Gaming: large growth potential

700 HK / 0700.HK | ADD - Maintained | HKD293.60 tp:HKD474.00
Mkt.Cap:US$357,442.00m | Avg.Daily Vol:US$710.90m | Free Float:59.90%
Internet Services

We participated in Tencent’s investor day on 28 Dec and visited its Timi Studio Group.

Tencent plans to launch new content for Honor of Kings in 2024F, and for the game to enter more foreign markets over the next five years.

We expect the government to widely seek industry and public opinion for its draft paper on gaming industry regulations, especially relating to the critical rules.

Tencent recently launched Dream Stars, an important new game, in our opinion. The game has so far received good market feedback.

Reiterate Add on Tencent, with an unchanged DCF-based TP of HK$474.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 218365b74b

[winston]

Tencent’s e-commerce drive takes off in 2023 on the back of super app WeChat’s short video and live streaming function

Online orders made through WeChat’s short video and live streaming function, Channels, grew more than 244 per cent in 2023 over the previous year

WeChat Channels has also become a major driver of Tencent’s advertising business, which grew 20 per cent year on year in the third quarter

by Iris Deng

Source: SCMP

https://www.scmp.com/tech/big-tech/arti ... g-function

[winston]

Tencent May Surprise With Margin, Shareholder Return

by Jeanny Yu

Plummeted about 60% from their record high three years ago.

Some anticipate its profit margins will beat market consensus due to a shift toward high-margin segments.

Also, the company may join its peers in boosting capital returns through increased dividends or share buybacks.

Mini-games and livestreaming video platform.

The company is expected to report that sales rose 8.6% from a year earlier in the fourth quarter, the slowest expansion in a year. Its net income likely fell 69% while it is seen posting an operating margin of 30%.

The volatility skew — which measures the demand for bearish put options versus bullish calls — has fallen to the lowest since late 2021.

Source: Bloomberg

https://finance.yahoo.com/news/tencent- ... 59506.html

[winston]

vested

TENCENT (00700.HK) 2023 Non-IFRS NP Lifts 36.4% to ~RMB157.7B, Final DPS Rises to HK$3.4

TENCENT (00700.HK) announced its annual results for the year ended December 2023.

Net profit was RMB115.216 billion, plummeting 38.8% YoY, mainly attributed to a gain of about RMB106.6 billion on deemed disposal of MEITUAN-W (03690.HK) in 4Q22.

EPS was RMB12.186.

Non-IFRS net profit reached RMB157.688 billion, rising 36.4% YoY, giving a non-IFRS EPS of RMB16.678.

TENCENT declared a final dividend of HK$3.4 per share for 2023, an increase of about 42% from HK$2.4 per share for 2022.

The company also said it plans to at least double the size of its share buybacks from HK$49 billion in 2023 to more than HK$100 billion in 2024.

TENCENT's full-year revenue was RMB609.015 billion, elevating 9.8% YoY.

Value-added Services (VAS) revenues amounted to RMB298.4 billion, up 3.8% YoY.

Of which, revenue from international games and local games lifted 14% and 2% to RMB53.2 billion and RMB126.7 billion respectively.

Revenue from social networking grew by 1% to RMB118.5 billion.

Revenue from online advertising hiked 23% to RMB101.5 billion, while revenue from fintech and business services elevated 15% to RMB203.8 billion.

For the year ended 31 December 2023, the combined monthly active accounts of Weixin and WeChat increased by 2% to 1.343 billion, while the monthly active accounts of QQ on mobile devices decreased by 3% to 554 million.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

Tencent doubles share buy-backs while annual and quarterly results miss estimates amid weaker video gaming sales

Tencent says it intends to double the size of its share repurchases to more than HK$100 billion this year

Domestic video game sales, traditionally Tencent’s strongest revenue driver, declined in the fourth quarter

by Iris Deng & Ben Jiang

Source: SCMP

https://www.scmp.com/tech/big-tech/arti ... 6053&tc=19

[winston]

vested

TENCENT Says Annual FCF To Excel US$24B, Capable of Returning to Shareholders Sustainably

TENCENT President Martin Lau accentuated that the Group's strong cash position, steady business growth, annual free cash flow of more than US$24 billion, and total cash in hand of US$57 billion as at the end of last year, give the Group the confidence and ability to return to its shareholders in a sustainable manner.

He thought that scaling up share buybacks is the most favorable option for shareholders.

Source: AAstocks.com

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

Tencent Holdings (700 HK)
4Q23: In-Line Results; Lifting Shareholder Returns

Tencent’s 4Q23 results came in slightly below our expectation.

Revenue grew 7.1% yoy to Rmb155.2b, in line with consensus estimate.

Gross margin expanded 3ppt yoy to 50%, better than consensus forecast.

Non-GAAP operating margin recovered to Rmb52b, while non-GAAP operating margin rose to 34.2%, beating our estimate.

NonIFRS net profit increased 43.7% yoy, 3% above consensus estimate on a positive revenue mix shift.

Maintain BUY with a lower target price of HK$382.00.

Source: UOBKH

https://research.uobkayhian.com/content ... 457fb60f4b

[winston]

vested

Broker│ Opinion

Citi│ Quality earnings growth, with improved shareholders' return

Jefferies│ Various departments drove growth, and capital returns reflect confidence in outlook

CLSA│ Revenue has high quality growth

Morgan Stanley│ Quarterly revenue slightly missed expectations, but earnings beat expectations with strengthened shareholders' return

Goldman Sachs│ Net profit beat estimations, and weak game sales offset by solid advertising, increased dividend and buybacks

UBS│ Earnings in line with expectations, with highlight on shareholders' return

CICC│ Gross profit continued to record rapid growth, driving high quality growth of the Company

CCBI│ Solid as a boulder

JPMorgan│ Healthy profit growth and ideal shareholders' return expected

BOCI│ 4Q23 recorded high quality growth

Nomura│ Stellar record on advertising results, but online game weak

Macquarie│ Profit margin stabilized with improved shareholders' return

HSBC Global Research│ Buyback and dividend will mean a 5% earnings yield in 2024

UOB Kay Hian│ Shareholders' return improved

Daiwa│ Shareholders' return improved further

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

Doubling share buyback in FY24F

Tencent’s 4Q23 and FY23 revenue grew by 7% and 10% yoy to Rmb155bn and Rmb609bn, respectively, largely in line with our expectations.

Non-IFRS net profit grew by 44% and 36% yoy to Rmb42.7bn and Rmb157.7bn in 4Q23 and FY23, respectively, slightly better than we expected.

We forecast revenue to grow 10.4% yoy and non-IFRS NP to increase 18.2% yoy in FY24F, driven by continuous growth of online ads and recovery of gaming business.

The company also announced that it plans to double its share buyback amount from FY23’s HK$49bn to HK$100bn in FY24F (c.5% of its current market cap).

Reiterate Add with a higher DCF-based TP of HK$478.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 3A0771C472