Tencent 0700 02 (Jan 15 - Aug 18)

[winston]

not vested

<Research Report>Deutsche Expects TENCENT 4Q Revenue, Non-GAAP Profit to Grow 30%

Deutsche Bank expected TENCENT (00700.HK) 4Q revenue and non-GAAP profit to grow 30% respectively to RMB27.3 billion and RMB8.1 billion, while non-GAAP EBIT margin is expected to expand to 40.5%.

Despite suggestions of only flat-to-mild mobile QoQ growth, the research house saw revenue growing 12% over the September quarter.

It is also confident around TENCENT's performance-based advertising growth momentum. However, margins could disappoint on payments growth, video content spread, revenue share to iOS and cloud.

The broker anticipated that the perennial payments competition amongst TENCENT, Alibaba and Baidu to increase around Chinese New Year.

TENCENT aims to expand red packet distribution through a number of plans. It is forecast that TENCENT payments to continue to expand market share (20% in 3Q15 according to iResearch)

Deutsche Bank maintained TENCENT at Buy and set the target price at $173.

Source: AAStocks Financial News

[winston]

not vested

Pony Ma: TENCENT (00700.HK) Upgraded to Maker Space, Creating Jobs

Pony Ma Huateng, chairman of the board and chief executive officer of TENCENT (00700.HK) -0.800 (-0.543%) Short selling $188.42M; Ratio 22.202% , said TENCENT has been upgraded from a open platform to a maker space in last few years, drawing many kick-starters to the field.

The platform has a substantial maker space, creating over RMB10 billion revenue for entrepreneurs and more than 15 million jobs for the society.

Source: AAStocks Financial News

[winston]

<Result Foresight>Brokers Expect TENCENT 2015 Non-GAAP Earnings to Rise 30%-32%

TENCENT (00700.HK) is going to announce its results next Thursday. Thanks to the revenue growth from mobile games, PC games and online advertisement, the market expected TENCENT's non-GAAP earnings in 2015 to range from RMB31.37 billion to RMB31.882 billion, up 29.5%-31.6% yearly, according to the forecast from 8 securities brokers.

Broker / 2015 non-GAAP earnings forecast (RMB) / YoY Change
CICC / 31.382 billion / + 31.6%
Morgan Stanley / 31.829 billion / +31.4%
JP Morgan / 31.811 billion / +31.3%
DBS Vickers / 31.709 billion / +30.9%
CCB International / 31.696 billion / +30.8%
Credit Suisse / 31.631 billion / +30.6%
Deutsche Bank/ 31.605 billion / +30.5%
Goldman Sachs / 31.37 billion / +29.5%
*Based on TENCENT's non-GAAP earnings of RMB24.224 billion recorded in 2014

Our website also summarized 2015 earnings forecast from 12 brokers

Broker / 2015 net profit forecast (RMB) / YoY Change
CICC / 29.92 billion / +25.7%
Macquarie / 29.907 billion / +25.6%
DBS Vickers / 29.609 billion / +24.4%
Morgan Stanley / 29.296 billion / +23.0%
CCB International / 29.199 billion / +22.6%
Nomura / 29.18 billion / +22.6%
JP Morgan / 29.164 billion / +22.5%
BNP Paribas /29.139 billion / +22.4%
Deutsche Bank/ 28.978 billion / +21.7%
Citigroup / 28.956 billion / +21.6%
Jefferies / 28.954 billion / +21.6%
Bank of America Merrill Lynch / 28.651 billion / +20.3%

*Based on TENCENT's net proft pf RMB23.81 billion recorded in 2014

Source: AAStocks Financial News

[winston]

not vested

<Research Report>Brokers' Ratings & Target Prices to TENCENT (00700.HK) (Table)

TENCENT (00700.HK) will announce 2015 results next Thursday (17 March).

9 brokers' forecasts on the group's earnings of last year based on non-GAAP ranged from RMB31.37-31.882 billion, up 29.5%-31.6% year over year. Median was RMB31.696 billion, up 30.8% yearly.

13 brokers' forecast on the group's earnings of last year ranged from RMB28.513-29.92 billion, up 19.8%-25.7% year over year. Median was RMB29.164 billion, up 22.5% yearly.

13 brokers' ratings and target prices to TENCENT:

Broker/Rating/Target price (HK$)
Macquarie/Outperform/198
Daiwa/Buy/195
Goldman Sachs/Conviction Buy/193
Bank of America Merrill Lynch/Buy/193
Citigroup/Buy/190
Nomura/Buy/190
JP Morgan/Overweight/179
Credit Suisse/Outperform/176
DBS Vickers/Buy/175
CICC/Recommend/175
Morgan Stanley/Overweight/173
Deutsche/Buy/173
CCB International /Outperform/172

Source: AAStocks Financial News

[winston]

<Research Report>TENCENT (00700.HK)'s Investment Ratings & TPs (Table) (Updated)

TENCENT (00700.HK) is set to release its 2015 results this Thursday (17 March).

Based on the forecast of 10 brokers, its 2015 net profit (Non-GAAP) is in a range of RMB31.37 billion to RM31.829 billion, representing a year on year increase of 29.5% to 31.4%, with a median of RMB31.674 billion, up 30.8% yearly.

Based on the forecast of 13 brokers, its 2015 net profit is in a range of RMB28.513 billion to RMB29.91 billion, representing a year on year increase of 19.8% to 25.6%, with a median of RMB29.164 billion, up 22.5% yearly.

Our website summarized the investment ratings and target prices from 15 brokers:

Broker/ Investment Rating/ Target Price (HK$)
Macquarie/ Outperform/ 198
Daiwa/ Buy/ 195
Goldman Sachs/ Conviction Buy/ 193
Bank of America Merrill Lynch/ Buy/ 193
Citigroup/ Buy/ 190
Nomura/ Buy/ 190
JP Morgan/ Overweight/ 179
Credit Suisse/ Outperform/ 176
DBS Vickers/ Buy/ 175
CICC/ Recommend/ 175
Morgan Stanley/ Overweight/ 173
Deutsche Bank/ Buy/ 173
CCB International/ Outperform/ 172
BOCOM International/ Neutral/ 170

Source: AAStocks Financial News

[winston]

not vested

Tencent net up 21pc

Tencent Holdings (0700) net profit soared 21 percent to 28.81 billion yuan (HK$34.28 billion) last year from 2014, boosted by increasing mobile game and online ad incomes.

A final dividend of 47 HK cents per share was proposed, up 30.6 percent year-on-year.

Turnover jumped 30 percent to 102.9 billion yuan, topping 100 billion yuan for the first time. Basic earnings per share rose to 3.1 yuan.

This is attributable to a 26 percent rise in online game revenues to 56.59 billion yuan and a 30 percent increase in social networks revenues to 24.08 billion yuan, thanks to higher digital content subscription and QQ membership.

Online ad sales soared 110 percent to 17.47 billion yuan, over 65 percent of which is generated on mobile platforms including its social networking apps like Wechat and QQ and mobile media platforms such as Tencent Video and Tencent News.

But online ad costs surged 92 percent to 8.94 billion yuan, due to greater traffic acquisition costs and investment in video content.

The stock rose 0.93 percent to HK$152.3 before the results were announced.

Source: The Standard

[winston]

Tencent: Solid Q4 Beat, Analysts Raise Estimates

By Shuli Ren

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... estimates/

[winston]

not vested

A Hong Kong portfolio should include Tencent (0700), which reveals earnings soon.

Its price is back to HK$158 and it can test its all-time high of HK$171.

Morgan Stanley put a HK$183 target as online game and ad revenues rose.

And at the end of last year there were more than 300 million WeChat and QQ wallet users connected to bank cards. T

he potential income from transfer handling and cross selling of financial products is huge.

Source: Dr Check, The Standard

[winston]

<Research Report>BofAML Raises TENCENT Target to $206; Kept Buy

Based on the survey of Penguin Intelligence, TENCENT (00700.HK) Weixin users showed an improvement in engagement in the past year. There has been an expansion of friends' circle in the app and daily usage frequency.

Bank of America Merrill Lynch expected TENCENT 2018 operating revenue and net profit to grow 17% and 18% YoY. The target price was raised to $206 from $195 and the rating was maintained at Buy.

Corporate employees grew from 32% to 40% of the survey participants, while the proportion of students fell to less than 15% from 20%. This is likely to offer more relevant audience for an expanded set of advertiser industries.

In addition, the broker also believed that the Moments and eCPM to be multiple times of that of official accounts, as the latter represented an estimated 5-10% of total ad sales last year.

When it comes to competition, market entry of foreign social media is a small risk since foreign entrant likely needs to cope with strict censorship which could result in operation complexity. However, new entrants might be possible if the authority has enough control and prefers to increase influence on overseas media.

Source: AAStocks Financial News

[winston]

not vested

G Sachs Reiterates TENCENT at CL Buy after Meeting with Management

Goldman Sachs said in its report that after meeting with the management, it reiterated TENCENT (00700.HK) +4.500 (+2.813%) Short selling $773.31M; Ratio 14.576% at Conviction Buy and kept EPS forecast unchanged with target price of $193, indicating a 21% upside potential.

The reported mentioned that the group's revenue was driven by games and advertising.

Management was positive about the business of computer games and mobile games as well as strategies of the overall game business.

As for advertising, TENCENT was a big winner in the advertising market last year. If the amount of advertisement reaches Facebook's level, the research house expected the ad revenue based on P4P to increase to US$7.8 billion in 2017.

The research house pointed out that the management tended to commercialize the group's business gradually as it has to ensure good user experience.

In addition, it predicted the group's game business to go global in due course and after 2018, zero computing and electronic games business will be its next sources of growth.

Source: AAStocks Financial News