Tencent 0700 04 (Oct 21 - Dec 25)

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vested

<Research>Nomura Expects TENCENT (00700.HK) 1Q24 Non-GAAP NP to Rise 33% YoY, Rev. to Grow 6%

Nomura issued a research report forecasting that TENCENT (00700.HK)'s 1Q24 non-GAAP net profit will rise 33% YoY.

Operating income will maintain 6% YoY growth, due to weak performance in the online game business.

Nomura also believed that TENCENT's online game revenues may fall 4% YoY in 1Q24, due to a high base effect a year ago, while domestic game revenue may drop 6% YoY.

2Q24 is a busier time for China's game industry, with TENCENT and NetEase, set to launch a number of blockbuster games in 2Q24 and upcoming summer, Nomura said.

Nomura believed that the two companies may increase their marketing spending before and after the launch of their new games, so as to boost their success rates.

Nomura also expected ad publishers such as WB-SW (09898.HK) , BILIBILI-W (09626.HK) and Douyin to monetize from it.

Nomura also noted that TENCENT accelerated its share buybacks this year. TENCENT's share buybacks in recent weeks accounted for over 10% of the Company's daily stock turnover.

Related News: UBS Projects TENCENT 1Q Rev. to Rise 6% YoY, Adj. NP to Hike 36% to RMB44.4B

Nomura believed that the above proactive buyback echoed the earlier commitment to more shareholder return by the Company's management.

Nomura maintained its FY2024 forecast for TENCENT unchanged, and kept its target price at $400, with rating kept at Buy.

Source: AAStocks Financial News

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

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Tencent shares climb most in months on earlier blockbuster debut

By Charlotte Yang

Tencent set a May 21 start date for Nexon Co’s Dungeon & Fighter Mobile for China .

Source: Bloomberg

https://theedgemalaysia.com/node/708852

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not vested

<Research>BofAS: TENCENT's Annual Buyback May Top $130B, Beating Forecast

BofA Securities released a report after meeting with TENCENT (00700.HK) management and U.S. investors.

It viewed that TENCENT has strong willingness, capability and execution on shareholder return, and that the company plans to buy back this year with $100 billion.

TENCENT sped up its buyback pace to $1 billion/day in January; if BofA Securities assumed such pace is continued, the annual buyback could be over $130 billion.

Together with the dividends declared last year, it was estimated that shareholders will receive a return of more than 5% this year.

Related News: Nomura Expects TENCENT (00700.HK) 1Q24 Non-GAAP NP to Rise 33% YoY, Rev. to Grow 6%

On the other hand, the size of TENCENT's buybacks already exceled the size of its shareholder Prosus' stake reduction.

Assuming that Prosus' stake reduction progress in 2-4Q24 is similar to that of 1Q24, it was projected that TENCENT's buybacks may be around 2x (or more) Prosus' stake cut.

TENCENT's strategic goal is to improve its game revenues, and it is not driven solely by new games.

The release of the DnF Mobile came earlier than market forecast, reflecting the company's confidence.

On the advertising front, BofA Securities believed that TENCENT's advertising performance will continue to outperform other large platforms in China in 2024, and that efforts such as upgrading the advertising platform infrastructure will juice persisted revenue growth looking ahead.

BofA Securities maintained a Buy rating on TENCENT, with a target price of $410.

Related News: BOCOMI: TENCENT 1Q24 Mobile Game Turnover Growth Shows Resilience, to be Confirmed in 2024

Source: AAStocks Financial News

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