Tencent 0700 02 (Jan 15 - Aug 18)

[winston]

<Research Report>Citi: TENCENT Chosen as Top Pick in 2H16, Lifts Target Price to $220

Citigroup, in its report, said TENCENT (00700.HK) is chosen as the top pick for 2H16 in the Internet industry in China, given its solid and visible earnings momentum and strength in mobile monetization.

The broker lifted the target price from $192 to $220, which is based on 32x 2017E non-GAAP EPS, with the rating Buy.

The broker believed Tencent is well positioned to capture the rising mobile monetization opportunities, leveraging its dominant position in social communication platforms WeChat and Mobile QQ with well-rounded exposure to entertainment (games, video and music); local services (fee-based income via Weixin Payment and traffic leads) and targeted social advertising (Qzone, Moments ads, news and official account ads).

Citigroup also lifted the EPS forecast of Tencent in 2016 from RMB4.324 to RMB4.586; and EPS forecast in 2017 from RMB5.578 to RMB5.848.

Source: AAStocks Financial News

[winston]

not vested

<Research Report>Deutsche Positive about Tencent Mkt Share in Mobile Games Up Again; Target Raised to $197

Deutsche Bank was positive about the positive catalysts from TENCENT (00700.HK)'s market shares in mobile games rising again and potential M&A.

It maintained the company at Buy with target lifted by 18% to $197. It also lifted FY16/17/18 revenues by 2%/4%/7% and non-GAAP net income by 2%/4%/7%.

Following its set of strong 1Q mobile game results, the broker noted new 2Q launches have also seen favorable feedback.

Licensed mobile games ZhengTu (a Giant title) and Legend of the Swordman Mobile (Kingsoft) recently climbed to the Top 1 and 3 on iOS.

The broker lifted its mobile game revenue forecast FY16/17/18 by 8%/14%/25%, respectively. Separately, the possible acquisition of Supercell could become a positive catalyst. Supercell's 2015 EBITDA was 15% of Tencent's EBITDA.

Source: AAStocks Financial News

[winston]

not vested

TENCENT President Martin Lau Cashes in Over $100M by Share Disposal

According to HKEX data disclosure, on 4 July, TENCENT (00700.HK) president and executive director Lau Chi Ping Martin on-market disposed of a total of 600,000 shares at an average price of $178.547 per share to cash in about $107 million, and the maximum price per share was $179. His shareholding of 0.48% remains unchanged.

Source: AAStocks Financial News

[winston]

not vested

China’s Tencent reports higher than expected second quarter profit on smartphone games revenue

Shenzhen-based Tencent’s revenue rose 52 per cent year on year to reach 35.7 billion yuan, with smartphone game revenues growing 114 per cent year on year to 9.6 billion yuan for the period.

Its monthly active users for mobile messaging app WeChat hit 806 million, representing a 34 per cent growth compared to the same period in 2015.

Source: SCMP


http://www.scmp.com/tech/article/200519 ... hone-games

[winston]

not vested

Mobile push dials Tencent upturn

A shopping spree by Tencent Holdings (0700) for premium content ranging from Game of Thrones to NBA broadcasts has again helped defy investors' expectations and a slowing Chinese economy.

Second-quarter sales and profit beat analysts estimates as the operator of the WeChat and QQ social network services splashed out on mobile games and content -- including anything from anime and comics to novels. That strategy paid off as users surged and online advertising revenue swelled 60 percent, confounding fears about marketing cutbacks.

"Tencent was able to take market share from existing players, thanks to the amount of traffic volume its mobile apps brought in, said Li Yujie, an analyst at RHB Research Institute in Hong Kong.

Indeed, founder Ma Huateng has shown a new-found willingness to go big when it comes to content. Also, it has merged its QQ Music unit with China Music Corp, combining some of the country's most popular Spotify-like services.

Its online advertising business raked in 6.5 billion yuan (HK$7.6 billion), fueled by a video streaming service whose NBA games attracted twice as many unique viewers during the latest season.

Tencent clearly dominated in gaming, with mobile gaming revenue alone more than doubled to 9.6 billion yuan. That outpaced a 52 percent rise in overall revenue to 35.7 billion yuan.

Tencent has now beaten analysts' expectations for profit and revenue in all but one of the past six quarters.

Yesterday, it reported a 47 percent climb in net income to a record 10.74 billion yuan, handily beating estimates.

Revenue from Value Added Services, a category that includes games and messaging, climbed 39 percent to 25.7 billion yuan.

WeChat had 805.7 million monthly active users and the mobile version of QQ had 666.5 million users at the end of the quarter.

Source: BLOOMBERG

[winston]

Tencent Soars On Q2 Earnings As Analysts Race To Raise Targets

By Shuli Ren

Equity analysts can’t raise their price targets fast enough for Tencent Holdings (700.Hong Kong/TCEHY).

Tencent soared 4.4% to 201.40 Hong Kong dollars this morning after hitting a home run with its second-quarter earnings.

All the major metrics are beyond the street’s expectations. Total revenue grew 52% from a year ago to 35.7 billion yuan, 7% above consensus. Net income soared 42% from a year ago to 11.3 billion yuan, beating the street by 11.6%.

Tencent’s core gaming business continued to do well. Online gaming revenue grew 32% from a year ago, mostly thanks to mobile games, which saw a sharp 113% year-on-year growth.

Online advertising – Tencent’s new source of revenue – also delivered thanks to WeChat moments, growing 60% from a year ago to 6.5 billion yuan. It now accounts for 18% of Tencent’s total revenue versus 16% in the first quarter. So Tencent now has an additional source of income and can diversify its earnings from game boys.

Morgan Stanley this morning raised its price target to HK$225 from HK$183 previously, saying:

We raise our revenue forecast 5% for 2016, 5% for 2017, and 6% for 2018, mainly to reflect the strong VAS and other revenue growth. As a result, our non-GAAP EPS estimates rise 10% for 2016, 8% for 2017, and 3% for 2018. We also roll forward our DCF to 2017.

Jefferies went further, now assigning HK$235 price target:

We revise up revenue by 4.3% to RMB39bn (+46.8% yoy) in 3Q16e and by 3.8% to RMB148bn (+44.1% yoy) in 2016e. We lower non-GAAP OP margin by 1.9ppt to 39.4% in 3Q16e and 1.5ppt to 39.9% in 2016e due to revenue mix change.

In a nutshell, we raise non-GAAP net profit by 4.7% to RMB11.7bn in 3Q16e (+40.9% yoy, 30% net margin); raise 2016e non-GAAP net profit by 4.6% to RMB44.9bn (+38.6% yoy, 30% net margin).

Revise PT up by 5% to HKD235 based on blended DCF (WACC 9.7%, HKD241) and 35x 12M forward P/E (HKD228).

It is interesting Jefferies derives a higher price target from discounted cash flow analysis.

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... e-targets/

[winston]

not vested

Deutsche: TENCENT Payment Biz Full of Opportunities; Reiterated Buy

Deutsche Bank, in its report, said TENCENT (00700.HK) 0.000 (0.000%) Short selling $177.01M; Ratio 4.508% 's revenue from music and video viewing upsurged and foresaw payment services to account as the significant part of Tencent's revenue.

The research house reiterated the tech giant at Buy with target of $213. It expected the sources of income of Tencent to remain diversified.

Deutsche Bank pointed out that the enhanced cooperation of Tencent with subsidiaries, like JD.com and Didi, helped Tencent boost more revenue from B2C business.

Source: AAStocks Financial News

[winston]

not vested

Tencent Surges To Become Asia’s Largest Company By Market Cap

By Shuli Ren

China’s Internet conglomerate Tencent Holdings (700.Hong Kong/TCEHY) advanced 3.7% on Monday, surpassing China Mobile (941.Hong Kong/CHL) as Asia’s largest company by market cap.

Tencent has advanced by more than a third this year and now has a market cap of $255.8 billion. China Mobile lags with $254 billion market cap, followed by Alibaba Group‘s (BABA) $250 billion and Samsung Electronics‘s (SSNLF) $229 billion.

Investors love Tencent because it can execute solidly in its core gaming business and develop new revenue streams.

Second quarter revenue at Tencent grew 52% from a year ago, as mobile gaming revenue saw a sharp 113% increase.

Online advertising, a new source of income, grew 60% to 6.5 billion yuan and now accounts for 18% of Tencent’s total sales.

And new ventures keep on popping up. Subscription revenue in Tencent Music, Video and Literature is a new topic of discussion.

Deutsche Bank‘s Alan Hellawell wrote this morning after Tencent presented to European investors last week:

Subscription revenues continue to surge relative to advertising as a component of Tencent’s music, video and literature businesses. The company highlighted its efforts to consolidate the music opportunity in particular. China ranks #19 as a market globally and is ripe for better monetization of the value chain.

We regard payments as one of Tencent’s top opportunities. While improved collaboration with affiliates such as JD.com and Didi are contributing to the continued shift toward better monetizing B2C transactions, management emphasized the much larger opportunity that online finance represents to Tencent longer term.

Source: Barron's Asia

[winston]

not vested

<Research Report>Deutsche Raises TENCENT Target to $229; Rated Buy

Deutsche Bank, in its report, pointed out that TENCENT (00700.HK) increasingly paid attention to battle games for players, which could enhance advertising conversion rate and ARPU.

The research house estimated Tencent to record 84% and 50% yearly growth for FY2016 and FY2017 mobile games.

Deutsche Bank rated Tencent at Buy with target revised up to $229 from $213 as mobile games, subscribers, payment systems and other measures boosted the group's revenue.

Additionally, Deutsche Bank raised the revenue forecast for 2016-18 of the company by 1.6%, 4.4% and 7.1% to reflect Tencent's better subscription services outlook and expectation of US non-GAAP net revenue rising 1.9%, 5.5% and 9.2%.


Source: AAStocks Financial News

[winston]

not vested

This Little-Known Company Will Soon Be the Largest in the World

By Dr. Steve Sjuggerud

I have a prediction for you...

A little-known Chinese company will become the world's largest company within the next five years.

The company is already worth more than $250 billion... That makes it the world's 10th-largest company by stock market value. But you ain't seen nuthin' yet...

I believe it'll continue to grow at record speed, which is exactly why I predict it'll soon be the world's largest.

Let me explain...

With more than $250 billion in value, this company is already a global giant. And when a company starts to reach the size of General Electric or Johnson & Johnson, it's easy to assume that the company is getting too big... You might think that its "high growth" era must be coming to an end soon.

But that's not the case with this little-known company. It's still growing as fast as a tiny startup...

For example, the company's quarterly earnings report came out last month. Sales were up 52% last year, and earnings were up 47%. That kind of growth is unbelievable... and it likely won't slow down much in the next couple of years.

With a growth rate like that, you can see why I expect this little-known Chinese company to become the world's largest company – moving from 10th place to first.

What's truly amazing to me is that almost nobody in the U.S. has even heard of this company. But basically everyone I met on my trip to Beijing and Shanghai over the summer can't live without what it does – you can't do business in China without it.

You might not have heard of it... But I guarantee that America's biggest names know all about it. Companies like Apple, Google, and Facebook are trying to copy its products as we speak. In the end, I predict this company will come out ahead... It will ultimately be bigger than them all.

The company is called Tencent.

Tencent's business is owning the screen time of China's population. By "screen time," I don't mean television screens. I mean the screens that the Chinese use for nearly everything – their smartphone screens.

This is where folks spend their time. This is where folks read and watch TV. It's their main source of entertainment. And Tencent's commanding control of screen time is why it will grow to be the world's largest company.

Take basketball, for example. Thanks in large part to retired NBA star Yao Ming's success, basketball's popularity has exploded in China in recent years. And if you're interested in watching an NBA game, Tencent owns the broadcasting rights throughout China.

Tencent runs several social networks, which currently have more than 800 million active users in total. The company also runs a massive payment network with roughly 300 million active users.

In short, everything in China revolves around smartphone screens. And no one owns screen time more than Tencent.

That simple fact is why Tencent's incredible growth can continue. And it's why I predict it will become the world's largest company within the next five years.

Source: Daily Wealth