vested
Brokers│Views
DBS│huge growth potential from WeChat ecosphere
Goldman Sachs│sees 2Q challenges, 2H revival, cost saving
Citigroup│further overhaul for fintech & biz services, ad biz
Jefferies│QoQ rev misses; restates hopes for 2H biz turnaround
Morgan Stanley│QoQ result misses; focuses on cost control
Credit Suisse│1Q result misses; needs patience in transition period
Nomura│QoQ result misses consensus; int'l game, video acc, biz services likely long-term growth drivers
JPMorgan│plague impact may ease in 3Q, but transitional effect could last few quarters
UBS│rev little shy; ad, fintech & biz services 2Q rev growth may ease
Source: AAStocks Financial News
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Tencent 0700 04 (Oct 21 - Dec 25)
Re: Tencent 0700 04 (Oct 21 - Dec 23)
by winston » Thu May 19, 2022 12:04 pm
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Tencent 0700 04 (Oct 21 - Dec 23)
by winston » Fri May 20, 2022 9:32 am
vested
Chinese tech giant Tencent reported disappointing first quarter revenue across all major business segments, including a hit to mobile pay from Covid lockdowns.
Shares of Tencent, the largest Hong Kong-listed Chinese stock by market value, traded nearly 7% lower Thursday, pulling down the broader Hang Seng index.
Fintech and business services revenue, the company’s second-largest revenue driver, dropped by 10.8% quarter-on-quarter in the period ended March 31 to 42.77 billion yuan ($6.29 billion).
That’s the first sequential drop since an 11.5% decline from the fourth quarter of 2019 to the first three months of 2020, according to Wind Information data.
Source: Phillips
Chinese tech giant Tencent reported disappointing first quarter revenue across all major business segments, including a hit to mobile pay from Covid lockdowns.
Shares of Tencent, the largest Hong Kong-listed Chinese stock by market value, traded nearly 7% lower Thursday, pulling down the broader Hang Seng index.
Fintech and business services revenue, the company’s second-largest revenue driver, dropped by 10.8% quarter-on-quarter in the period ended March 31 to 42.77 billion yuan ($6.29 billion).
That’s the first sequential drop since an 11.5% decline from the fourth quarter of 2019 to the first three months of 2020, according to Wind Information data.
Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Tencent 0700 04 (Oct 21 - Dec 23)
by winston » Fri May 20, 2022 9:41 am
vested
Tencent Holdings (700 HK) - Patience required to ride out the storm
Tencent delivered a weak set of 1QFY22 results.
Total revenue was flattish year-on-year (YoY) at RMB135.5b, which was ~4% below consensus.
Domestic game revenue dipped 1% YoY to RMB33.0b due to the minor protection measures, while international game revenue grew 4% YoY to RMB10.6b.
Online ad revenue fell 18% YoY to RMB18.0b on the back of weak demand from certain advertiser categories, coupled with the regulatory changes impacting the online advertising industry.
Non-GAAP earnings per share (EPS) of RMB2.62 came in 5% below consensus.
On the regulatory front, management noted that the government has recently released a number of supportive signals towards the digital and platform economy, but time is needed for supportive measures to flow through.
On ads, we believe 2QFY22 will prove to be challenging especially with the Shanghai lockdowns. This has a disproportionate impact on nationwide advertising as media advertising marketing decisions, especially for multinational companies, are typically made in Shanghai.
To navigate through the near-term headwinds, we expect Tencent to rationalize costs, with management expecting general and administrative expenses to decelerate as they work through the year.
All considered, we believe 2QFY22 will be notably challenging from a revenue/profit perspective. However, we believe revenue growth recovery could potentially be seen from 2HFY22 should an improvement in consumption positively impact Tencent’s ads and Fintech businesses, while its shift in cloud strategy towards more scalable and profitable opportunities should also bode well for longer-term sustainability.
In light of the above, we take our numbers down and our FV moves down from HKD501 to HKD466 while still maintaining our ESG discount of 5%. BUY.
Source: OCBC
Tencent Holdings (700 HK) - Patience required to ride out the storm
Tencent delivered a weak set of 1QFY22 results.
Total revenue was flattish year-on-year (YoY) at RMB135.5b, which was ~4% below consensus.
Domestic game revenue dipped 1% YoY to RMB33.0b due to the minor protection measures, while international game revenue grew 4% YoY to RMB10.6b.
Online ad revenue fell 18% YoY to RMB18.0b on the back of weak demand from certain advertiser categories, coupled with the regulatory changes impacting the online advertising industry.
Non-GAAP earnings per share (EPS) of RMB2.62 came in 5% below consensus.
On the regulatory front, management noted that the government has recently released a number of supportive signals towards the digital and platform economy, but time is needed for supportive measures to flow through.
On ads, we believe 2QFY22 will prove to be challenging especially with the Shanghai lockdowns. This has a disproportionate impact on nationwide advertising as media advertising marketing decisions, especially for multinational companies, are typically made in Shanghai.
To navigate through the near-term headwinds, we expect Tencent to rationalize costs, with management expecting general and administrative expenses to decelerate as they work through the year.
All considered, we believe 2QFY22 will be notably challenging from a revenue/profit perspective. However, we believe revenue growth recovery could potentially be seen from 2HFY22 should an improvement in consumption positively impact Tencent’s ads and Fintech businesses, while its shift in cloud strategy towards more scalable and profitable opportunities should also bode well for longer-term sustainability.
In light of the above, we take our numbers down and our FV moves down from HKD501 to HKD466 while still maintaining our ESG discount of 5%. BUY.
Source: OCBC
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Tencent 0700 04 (Oct 21 - Dec 23)
by winston » Tue Jun 28, 2022 9:49 am
not vested
Guotai Junan: Naspers Shr Cut in TENCENT May Spark Brief Volatility; Limited Impact on Fundamentals
TENCENT (00700.HK) had announced yesterday that the substantial shareholder Naspers and its subsidiary Prosus commenced a long-term and open-ended repurchase programme in respect of the shares in the respective share capitals of Prosus and Naspers, which will be funded by orderly on-market sales of Shares held by Naspers.
Naspers said that it anticipates the number of Shares that will be sold per day will represent a small percentage of average daily traded volume of Shares.
For example, had Naspers executed the Repurchase Programme over the last three months within European regulatory limits, the resulting Shares that would have been sold on a daily basis would have been, on average, not more than approximately 3-5% of average daily traded volume of Shares.
Guotai Junan Securities issued a report on the above matter. According to corporate information, MIH TC (controlled by Naspers through Prosus) held about 28.82% of TENCENT's shares as of the end of 2021, representing the largest shareholder of the company.
Since the daily trading volume is small under the Repurchase Programme, the broker believed that it may only spark brief market volatility, and pose limited impact on TENCENT's long-term stock price and fundamentals.
Moreover, Guotai Junan Securities viewed that TENCENT's fundamentals are reviving, despite near-term pressure, in light of growing scale of users of WeChat, as a major traffic source for TENCENT; China government support towards platform economy and digital economy; and the resumption of online game approval.
TENCENT was rated at Accumulate with target price of $450.19.
Source: AAStocks Financial News
Guotai Junan: Naspers Shr Cut in TENCENT May Spark Brief Volatility; Limited Impact on Fundamentals
TENCENT (00700.HK) had announced yesterday that the substantial shareholder Naspers and its subsidiary Prosus commenced a long-term and open-ended repurchase programme in respect of the shares in the respective share capitals of Prosus and Naspers, which will be funded by orderly on-market sales of Shares held by Naspers.
Naspers said that it anticipates the number of Shares that will be sold per day will represent a small percentage of average daily traded volume of Shares.
For example, had Naspers executed the Repurchase Programme over the last three months within European regulatory limits, the resulting Shares that would have been sold on a daily basis would have been, on average, not more than approximately 3-5% of average daily traded volume of Shares.
Guotai Junan Securities issued a report on the above matter. According to corporate information, MIH TC (controlled by Naspers through Prosus) held about 28.82% of TENCENT's shares as of the end of 2021, representing the largest shareholder of the company.
Since the daily trading volume is small under the Repurchase Programme, the broker believed that it may only spark brief market volatility, and pose limited impact on TENCENT's long-term stock price and fundamentals.
Moreover, Guotai Junan Securities viewed that TENCENT's fundamentals are reviving, despite near-term pressure, in light of growing scale of users of WeChat, as a major traffic source for TENCENT; China government support towards platform economy and digital economy; and the resumption of online game approval.
TENCENT was rated at Accumulate with target price of $450.19.
Source: AAStocks Financial News
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
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Re: Tencent 0700 04 (Oct 21 - Dec 23)
by winston » Tue Jun 28, 2022 2:16 pm
vested
Largest shareholder stake sale
Tencent’s largest shareholder, Prosus, announced an open-ended share buyback program for Prosus and Naspers, with the funding from selling holdings in Tencent.
Shares of Tencent reacted negatively after the announcement.
Offloading investment seems to be the trend for TMT names to realize gains.
The Prosus plan may cap Tencent’s near-term performance. But we believe
the news is fully digested. TP: HK$440.
Source: CIMB
https://rfs.cgs-cimb.com/api/download?f ... E4178F6F2A
Largest shareholder stake sale
Tencent’s largest shareholder, Prosus, announced an open-ended share buyback program for Prosus and Naspers, with the funding from selling holdings in Tencent.
Shares of Tencent reacted negatively after the announcement.
Offloading investment seems to be the trend for TMT names to realize gains.
The Prosus plan may cap Tencent’s near-term performance. But we believe
the news is fully digested. TP: HK$440.
Source: CIMB
https://rfs.cgs-cimb.com/api/download?f ... E4178F6F2A
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
- Posts: 110210
- Joined: Wed May 07, 2008 9:28 am
Re: Tencent 0700 04 (Oct 21 - Dec 23)
by winston » Wed Jun 29, 2022 2:13 pm
not vested
Tencent Holdings (700 HK) - Assessing impact from reduction in stake by Naspers/Prosus
On 27 June 2022, Naspers and Prosus, substantial shareholders of Tencent with a ~29% stake in the company, announced that they would begin an open-ended, repurchase programme of Naspers and Prosus shares.
This would entail Prosus selling small numbers of ordinary shares in Tencent regularly and in an orderly manner, while concurrently purchasing Prosus and Naspers shares pursuant to their repurchase programme for as long as the group’s trading discount to net asset value is at ‘elevated levels’.
All considered, we believe that the impact on Tencent’s share price from this latest development is likely to be manageable.
Per Prosus’s announcement, we understand that the number of Tencent shares sold per day is anticipated to be a small percentage of its average daily traded volume.
Nonetheless, the duration of the repurchase programme is unclear, and there remains uncertainty over Prosus’s and Naspers’s target trading discount.
Still, we do not rule out the possibility that Tencent could look to partially cushion the impact from this development via share buy-backs funded from its stakes across its portfolio of investees, especially from the more mature entities.
While we remain constructive on Tencent’s longer-term prospects and the recovery outlook of the China internet complex, we still maintain our relative preference for JD.com, NetEase, and Meituan per our last sector note. BUY.
Source: OCBC
Tencent Holdings (700 HK) - Assessing impact from reduction in stake by Naspers/Prosus
On 27 June 2022, Naspers and Prosus, substantial shareholders of Tencent with a ~29% stake in the company, announced that they would begin an open-ended, repurchase programme of Naspers and Prosus shares.
This would entail Prosus selling small numbers of ordinary shares in Tencent regularly and in an orderly manner, while concurrently purchasing Prosus and Naspers shares pursuant to their repurchase programme for as long as the group’s trading discount to net asset value is at ‘elevated levels’.
All considered, we believe that the impact on Tencent’s share price from this latest development is likely to be manageable.
Per Prosus’s announcement, we understand that the number of Tencent shares sold per day is anticipated to be a small percentage of its average daily traded volume.
Nonetheless, the duration of the repurchase programme is unclear, and there remains uncertainty over Prosus’s and Naspers’s target trading discount.
Still, we do not rule out the possibility that Tencent could look to partially cushion the impact from this development via share buy-backs funded from its stakes across its portfolio of investees, especially from the more mature entities.
While we remain constructive on Tencent’s longer-term prospects and the recovery outlook of the China internet complex, we still maintain our relative preference for JD.com, NetEase, and Meituan per our last sector note. BUY.
Source: OCBC
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
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Re: Tencent 0700 04 (Oct 21 - Dec 23)
by winston » Mon Jul 18, 2022 4:31 pm
BofAS Sees TENCENT 2Q Adj. NP of RMB25.4B; Buyback to Offset Partial Prosus Stake Cut
BofA Securities predicted TENCENT (00700.HK)'s 2Q22 adjusted net profit to sink 25% YoY to RMB25.4 billion.
It also expected the 2Q22 revenue to fall 6% YoY to RMB129 billion, which indicated the strategic change in cloud business, pandemic lockdown impact, as well as lack of new game launches.
The broker observed the macro pressure on the company's 2Q22E earnings largely known to the market, and the company's margin and revenue trends to improve sequentially in 3Q22.
Correspondingly, the broker kept the target price on TENCENT at $497 with rating Buy.
Related News: Macquarie More Positive on CN Online Game Sector's Development, Favors TENCENT, NTES-S
Prosus had previously announced a buyback of TENCENT's shares, which would be funded by its disposal of 29% stake in TENCENT. In BofA Securities' calculation, Prosus' stake in TENCENT is much more than enough to cover its maximum buyback amount.
According to disclosure, Prosus spent US$705 million in buyback from 28 June to 8 July, with an average daily expenditure of US$78 million, equivalent to about 6.5% of TENCENT's turnover.
On the other hand, TENCENT repurchased shares for US$460 million from 28 June to 14 July, with the capital involved in repurchasing shares every day accounting for 3.2% of the turnover during the period. These offset partial Prosus' reduction in TENCENT's shares.
Source: AAStocks Financial News
BofA Securities predicted TENCENT (00700.HK)'s 2Q22 adjusted net profit to sink 25% YoY to RMB25.4 billion.
It also expected the 2Q22 revenue to fall 6% YoY to RMB129 billion, which indicated the strategic change in cloud business, pandemic lockdown impact, as well as lack of new game launches.
The broker observed the macro pressure on the company's 2Q22E earnings largely known to the market, and the company's margin and revenue trends to improve sequentially in 3Q22.
Correspondingly, the broker kept the target price on TENCENT at $497 with rating Buy.
Related News: Macquarie More Positive on CN Online Game Sector's Development, Favors TENCENT, NTES-S
Prosus had previously announced a buyback of TENCENT's shares, which would be funded by its disposal of 29% stake in TENCENT. In BofA Securities' calculation, Prosus' stake in TENCENT is much more than enough to cover its maximum buyback amount.
According to disclosure, Prosus spent US$705 million in buyback from 28 June to 8 July, with an average daily expenditure of US$78 million, equivalent to about 6.5% of TENCENT's turnover.
On the other hand, TENCENT repurchased shares for US$460 million from 28 June to 14 July, with the capital involved in repurchasing shares every day accounting for 3.2% of the turnover during the period. These offset partial Prosus' reduction in TENCENT's shares.
Source: AAStocks Financial News
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
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Re: Tencent 0700 04 (Oct 21 - Dec 23)
by winston » Mon Jul 25, 2022 9:34 am
vested
Tencent makes a move to turn WeChat’s short-video function Channels into a money pot through ads and e-commerce tool
The Shenzhen-based company has launched a new e-commerce tool to create online stores on Channels
Tencent is speeding up efforts to make money from Channels after reporting almost no revenue growth in the first quarter of 2022
by Iris Deng
Source: SCMP
https://www.scmp.com/tech/big-tech/arti ... 7e972c154b
Tencent makes a move to turn WeChat’s short-video function Channels into a money pot through ads and e-commerce tool
The Shenzhen-based company has launched a new e-commerce tool to create online stores on Channels
Tencent is speeding up efforts to make money from Channels after reporting almost no revenue growth in the first quarter of 2022
by Iris Deng
Source: SCMP
https://www.scmp.com/tech/big-tech/arti ... 7e972c154b
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
- Posts: 110210
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Re: Tencent 0700 04 (Oct 21 - Dec 23)
by winston » Tue Aug 02, 2022 10:16 am
vested
Tencent Holdings (700 HK)
2Q22 Preview: Still Plenty Of Headwinds
We see near-term headwinds from its online game and advertising segments as well as
subdued share price performance from its investee companies.
However, we believe Tencent will still be able to gain market share in overseas markets as it has a confirmed 20 games pipeline with 20 in 2022, with over 40 new games ready to be published over 2022-24 in overseas markets.
We trimmed our target price to HK$408.00 from HK$445.00.
Maintain BUY as it is trading at the historical trough valuation level.
Source: UOBKH
https://research.uobkayhian.com/content ... cf1520e3c5
Tencent Holdings (700 HK)
2Q22 Preview: Still Plenty Of Headwinds
We see near-term headwinds from its online game and advertising segments as well as
subdued share price performance from its investee companies.
However, we believe Tencent will still be able to gain market share in overseas markets as it has a confirmed 20 games pipeline with 20 in 2022, with over 40 new games ready to be published over 2022-24 in overseas markets.
We trimmed our target price to HK$408.00 from HK$445.00.
Maintain BUY as it is trading at the historical trough valuation level.
Source: UOBKH
https://research.uobkayhian.com/content ... cf1520e3c5
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
- Posts: 110210
- Joined: Wed May 07, 2008 9:28 am
Re: Tencent 0700 04 (Oct 21 - Dec 23)
by winston » Sat Aug 13, 2022 7:54 am
vested
Tencent woes mount even after US$560b selloff
Source: Bloomberg
https://www.businesstimes.com.sg/garage ... 0b-selloff
Tencent woes mount even after US$560b selloff
Set to report its first quarterly revenue decline since the 2008 financial crisis, weighed down by a slowdown in gaming sales.
Player spending on its Honor of Kings mobile game has declined for three consecutive months since May.
“The market is pricing in no new game approval for Tencent this year, a double-digit decline in advertising revenue and struggling cloud businesses”.
Source: Bloomberg
https://www.businesstimes.com.sg/garage ... 0b-selloff
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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