Tencent 0700 04 (Oct 21 - Dec 25)

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vested

M Stanley Lists TENCENT's Key Equity Investments (Incl. MEITUAN-W), Estimated Values (Table)

Company Name│Stake│Estimated Values

MEITUAN-W (03690.HK) +2.200 (+1.337%) │17%│USD24.284 billion (equivalent to HKD20 per share)

Pinduoduo Inc. (PDD.US) │15.5%│USD10.02 billion (equivalent to HKD8.2 per share)

SEA│18.6%│USD9.367 billion

KUAISHOU-W (01024.HK)│21.1%│USD8.675 billion (equivalent to HKD7.1 per share)

NIO-SW (09866.HK)│9.8%│USD3.487 billion (equivalent to HKD2.9 per share)

BEKE-W (02423.HK)│11.5%│USD2.308 billion (equivalent to HKD1.9 per share

JD-SW (09618.HK)│2.3%│USD2.061 billion (equivalent to HKD1.7 per share)

Kakao│5.9%│USD1.624 billion

BILIBILI-SW (09626.HK)│11.2%│USD1.106 billion (equivalent to HKD0.9 per share)

Tongcheng-Elong│21.5%│USD1.001 billion

DIDI│6.5%│USD909 million

Netmarble│17.5%│USD757 million

Vipshop Holdings Limited (VIPS.US)│9.8%│USD573 million

Kakao bank│1.6%│USD193 million
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Total│-│USD66.363 billion (equivalent to HKD54.8 per share)

Source: AAStocks Financial News

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China's Tencent reports its first-ever revenue drop as regulations and Covid-19 bite

by Josh Ye

HONG KONG (Aug 17): China's Tencent Holdings reported on Wednesday its first ever quarterly sales fall, hurt by a lack of game approvals and regulations that limit playing time, as well as Covid-19 lockdowns and a weak economy that squeezed ad sales.

Has reported double-digit growth almost every quarter since it went public in 2004.

The company said on Wednesday revenue declined 3% to 134.034 billion yuan (US$19.78 billion) for the three months ended June 30 from 138.259 billion yuan a year earlier.

Ma Huateng, chairman and CEO of Tencent, said, "During the second quarter, we actively exited non-core businesses, tightened our marketing spending, and trimmed operating expenses, enabling us to sequentially increase our non-IFRS earnings, despite difficult revenue conditions."

Source: Reuters

https://www.theedgemarkets.com/article/ ... vid19-bite

[winston]

China's Tencent reports its first-ever revenue drop as regulations and Covid-19 bite

by Josh Ye

HONG KONG (Aug 17): China's Tencent Holdings reported on Wednesday its first ever quarterly sales fall, hurt by a lack of game approvals and regulations that limit playing time, as well as Covid-19 lockdowns and a weak economy that squeezed ad sales.

Has reported double-digit growth almost every quarter since it went public in 2004.

The company said on Wednesday revenue declined 3% to 134.034 billion yuan (US$19.78 billion) for the three months ended June 30 from 138.259 billion yuan a year earlier.

Ma Huateng, chairman and CEO of Tencent, said, "During the second quarter, we actively exited non-core businesses, tightened our marketing spending, and trimmed operating expenses, enabling us to sequentially increase our non-IFRS earnings, despite difficult revenue conditions."

Source: Reuters

https://www.theedgemarkets.com/article/ ... vid19-bite

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Tencent profit halves to 42b yuan as revenue slumps for first time

by Aiden He

Online advertising revenue slid a record 18 percent in the quarter.

Source: The Standard

https://www.thestandard.com.hk/section- ... first-time

[winston]

Tencent Holdings (700 HK)
2Q22: Earnings Beat; Buoyed By Cost Savings And Video Account Monetisation

Tencent’s 2Q22 results were broadly within expectations.

Revenue declined 3% yoy to Rmb133.5b, in line with our and the street’s estimates.

Gross margin contracted by 2.2ppt yoy to 43% on stringent cost control.

Non-GAAP net profit was Rmb28.1b, down 17% yoy (after stripping out extraordinary items), beating our expectations on prudent cost control.

The company during the earnings call stated it was confident on the recovery of the macro economy.

Maintain BUY. Target price: HK$400.00.

Source: UOBKH

https://research.uobkayhian.com/content ... 592bf89bf0

[winston]

vested

Tencent Holdings (700 HK): <Earnings First Take> 2Q22 revenue declined by 3%, slightly below market expectations [BUY, TP HK$447.0]

Revenue declined by 3% to Rmb134bn, slightly missing consensus, due to slower-than-expected games growth and weak performance in Fintech business

Gross profit decreased by 8%, with the margin contracting by 2ppt y-o-y to 43%

Non-IFRS net profit decreased by 17% to Rmb28.1bn, better than market expectations of c.20% decline thanks to better cost control

Expect negative share price performance given the weaker-than-expected revenue growth

Source: DBS

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Brokers│Views

CSC Financial│result subdued, yet topping consensus

Goldman Sachs│2Q profit beats, focuses on WeChat Channels potential; sees profit growth in coming quarters

HSBC Global Research│QoQ result beats, profit offsets inflection pt for rebound

Jefferies│QoQ rev. in-line, non-IFRS profit beats

BOCOMI│QoQ profit beats, WeChat Channels is key driver for rev. growth

Citigroup│profit stabilizes, backed by cost cut but macro headwinds persist

JPMorgan│efficiency improvement plan drives profit revival

Nomura│QoQ profit beats, rev. in-line

Credit Suisse│result driven by 2Q profit margin beat; cost optimization may emerge in 2H

UBS│risk-reward improves, profit growth to accelerate post-bottoming in 2Q

Morgan Stanley│mkt concerned about WeChat Channels monetization progress

Related News: Citi Drops TENCENT TP to $468 on Mixed 2Q22 Results, Expects Rev. Growth to Resume Next Yr

Source: AAStocks Financial News

[winston]

vested

Tencent Holdings (700 HK) - Looking forward to the earnings recovery

Tencent delivered a mixed 2Q22 scorecard.

Revenue fell 3% to CNY134.0b, which was 1% below consensus.

Domestic and international games revenue declined 1% YoY to CNY42.5b which looked a tad weak.

In light of tighter cost control, non-GAAP OPM was robust at 27.4% while non-GAAP PATMI of CNY28.1b (-17% YoY) came in 15% above consensus.

In our view, the key positive development was the updates given by management on Video Accounts (VA). We expect a steeper monetisation ramp curve vs. Weixin Moments given the size of traffic and existing advertiser demand.

Management notes that the group should be able to return to YoY earnings growth, on the back of cost initiatives (some of which will only materialise in 2H22) as well as high margin revenue initiatives (most immediate of which is VA).

Management also stressed that this growth is not predicated on the game business returning to revenue growth.

Looking into 2H22, ads and FinTech should grow on the back of higher commercial activity in China and the monetization ramp for VA, while the outlook for games remains soft as the market awaits new launches.

Management shared that it is focused on returning capital to shareholders; and has substantial ammunition relative to its market cap to continue doing dividends and buybacks at an aggressive rate.

In our view, the potential earnings recovery should be positive for investor sentiment, undergirded by a continued stringent approach towards costs.

Following adjustments to our estimates and assumptions, our fair value (FV) drops from HKD466 to HKD428, while maintaining our ESG discount of 5%. BUY.

Source: OCBC

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TENCENT Reportedly Sets 'Soft Target' of Divesting RMB100B of Listed Stocks This Yr; Meituan Not Top Priority for Shr Sales

TENCENT (00700.HK) has outlined a soft target of divesting approximately USD14.5 billion (about RMB100 billion) in its USD88 billion investment portfolio of listed stocks within this year, reported Financial Times, citing people familiar with the matter.

The actual scale of the divestment, however, will depend on the market conditions and internal profit goals.

The proposed divestment targets large-scale Chinese enterprises including MEITUAN-W (03690.HK). However, MEITUAN-W is not a top priority for share sales, given its robust results, the sources added.

Source: AAStocks Financial News

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vwatws

Broker's Forecasts on TENCENT's Key Equity Investments (Table)

Shares│Stake│Estimated Values (based on estimates in mid-August)│Equivalent Estimated Value per TENCENT Share (based on estimates in mid-August)

MEITUAN-W (03690.HK) │17%│USD24.284 billion│HKD20

Pinduoduo Inc. (PDD.US)│15.5%│USD10.02 billion│HKD8.2

SEA│18.6%│USD9.367 billion│HKD7.7

KUAISHOU-W (01024.HK) │21.1%│USD8.675 billion│HKD7.1

NIO-SW (09866.HK) │9.8%│USD3.487 billion│HKD2.9

BEKE-W (02423.HK)│11.5%│USD2.308 billion│HKD1.9

JD-SW (09618.HK)│2.3%│USD2.061 billion│HKD1.7

Kakao│5.9%│USD1.624 billion│HKD1.3

BILIBILI-SW (09626.HK)│11.2%│USD1.106 billion│HKD0.9

TONGCHENGTRAVEL (00780.HK) 21.5%│USD1.001 billion│HKD0.8

DIDI│6.5%│USD909 million│HKD0.7

Netmarble│17.5%│USD757 million│HKD0.6

Vipshop Holdings Limited (VIPS.US) 9.8%│USD573 million│HKD0.5

Kakao bank│1.6%│USD193 million│HKD0.2
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Total│-│USD66.363 billion│HKD54.8


Source: AAStocks Financial News