Tencent 0700 04 (Oct 21 - Dec 25)

[winston]

not vested

Brokers | Views

BOCOMI│Cost control effective; Video Accounts entailed incremental ad revenue

Goldman Sachs│Quarterly results beat; growth in cloud computing and fintech
expected to stimulate faster profit growth in 4Q

DBS│3Q net profit growth better than expected; distributing Meituan shares
equivalent to about 5% dividend return; performance positive

Jefferies│3Q net profit growth beat; smartphone game revenue also beat

Nomura│Quarterly results in line; non-IFRS earnings higher than expected

CMBI│Profit growth back on track

CCBI│Quarterly results slightly beat; strong growth in Video Accounts

Daiwa│Quarterly results beat on rapid growth of ad revenue; 2022-24E EPS raised by 1-6%

JPMorgan│Proper cost control drove profit to maintain growth

Citi│Tencent’s distribution of Meituan shares showed its commitment to shareholder returns

UOB Kay Hian│Higher efficiency boosted performance in last quarter

Morgan Stanley│Total game revenue beat on growth in international games

UBS│Proper cost control led to 3Q profit growth

Related News: CITIC Securities: TENCENT Shr Price Taps Value Investment Zone; Results May Resume Growth

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... t-news/HK6

[winston]

not vested

Tencent Holdings (700 HK) - Positive news galore

Tencent’s (700 HK) 3Q22 revenue trends were still relatively weak but there are glimpses of light at the end of the tunnel, with management citing advertising demand turning positive.

Cost control efforts helped a significant beat at the bottom-line, with the company scaling back on loss-making activities in search of profitability.

Tencent also delivered further positive news this quarter, announcing the distribution in specie of 90% of its stake in Meituan shares to shareholders. All in all, this turned out to be a relatively positive earnings season for Tencent.

Over the long-term, we expect advertising and financial services business to be the growth engines for Tencent going forward while the domestic gaming business matures.

Tencent continues to be a good allocator of capital, returning close to USD40b of capital (JD shares distribution, Meituan shares distribution and share buybacks) to shareholders in an extremely challenging macro environment in the past 12 months.

Following adjustments to our estimates and assumptions, our fair value (FV) declines from HKD428 to HKD420, while maintaining our ESG discount of 5%.

This FV includes the Meituan dividend in specie distribution of HKD16. BUY.

Source: OCBC

[winston]

not vested

G Sachs Lists TENCENT's Major Equity Investments, Estimated Value (Table)

2022/11/17

(1) Online Game
Companies│Stake│Estimated Value│Equivalent Valuation per Tencent Shr
Epic Game│42%│RMB 108.2 billion│HKD12.5
Sea Ltd│16.9%│RMB 91.23 billion│HKD10.5
Activision Blizzard (ATVI.US) │5%│RMB 20.2 billion│HKD2.3

(2) Non-game Entertainment
Snapchat│15.4%│RMB 18.3 billion│HKD2.1
Spotify│8.5%│RMB 13.37 billion│HKD1.5
KUAISHOU-W (01024.HK) │17%│RMB 20.226 billion│HKD2.3
BILIBILI-W (09626.HK) │11.3%│RMB 7.978 billion│HKD0.9
Zhihu (ZH.US)│12.9%│RMB 1.275 billion│HKD0.1
DouYu (DOYU.US)│36.9%│RMB 1.124 billion│HKD0.1
CMC holdings│43%│RMB 17.2 billion│HKD2

(3) E-commerce
MEITUAN-W (03690.HK)│17%│RMB 216.195 billion│HKD24.9
JD-SW (09618.HK) │2.4%│RMB 21.236 billion│HKD2.4
Pinduoduo (PDD.US)│15.5%│RMB 129.573 billion│HKD14.9
BEKE-W (02423.HK)│RMB 18.96 billion│HKD2.2

(4) Auto
NIO-SW (09866.HK) │10.5%│RMB 34.682 billion│HKD4
Tesla (TSLA.US) │0.1%│RMB 7.404 billion│HKD0.9

(5) Financials
WeBank│30%│RMB 24.681 billion│HKD2.8
CICC (03908.HK)│4.5%│RMB 4.286 billion│HKD0.5
ZA ONLINE (06060.HK) │2.7%│RMB 697 million│HKD0.1
Futu Holdings (FUTU.US)│19.8%│RMB 9.798 billion│HKD1.1

(6) Internet
KANZHUN LIMITED (BZ.US) │8.2%│RMB 6.044 billion│HKD0.7
KOOLEARN (01797.HK)│1.6%│RMB551 million │HKD0.1
WB-SW (09898.HK) │8.5%│RM B1.159 billion│HKD0.1
----------------------------------------------

Aggregate equity investment amounts to RMB947.358 billion, equivalent to $109 per share (accounting for about 25% of TENCENT's target price valuation)

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... 227124/all

[winston]

not vested

Short videos silver lining, says Pony Ma

by Karen Ng

Tencent (0700) should focus on developing its short video-feed feature in WeChat as video game licenses will be in tight supply in the long run.

Ma said the gaming division must focus on high-quality products and expand overseas amid tightened controls over the gaming industry.

Hopes to optimize the feature to form a loop consisting of short video entertainment and e-commerce - similar to lead rival ByteDance's TikTok.

Source: The Standard

https://www.thestandard.com.hk/section- ... ys-Pony-Ma

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[winston]

not vested

Tencent Holdings (700 HK) - Stay invested for the recovery

Over the long-term, we expect advertising and financial services business to be the growth engines for Tencent while the domestic gaming business matures.

Tencent continues to be a good allocator of capital, returning close to USD40b of capital (JD shares distribution, Meituan shares distribution and share buybacks) to shareholders in an extremely challenging macro environment in the past 12 months.

While a near-term pullback in share price is possible, we continue to be positive about the longer-term outlook.

Following adjustments, our fair value (FV) increases from HKD420 to HKD480, while maintaining our ESG discount of 5%. BUY.

Source: OCBC

[winston]

vested

Earnings have declined for the past four quarters and revenue for the past two, as a big crackdown on internet platforms and new mobile games took a toll.

Earnings growth is expected to return in 2023.

Ideally, Tencent would forge a new base after its big run.

Source: IBD

[winston]

vested

Tencent Becomes a Can’t-Touch Stock for Some ESG Investors

by Sheryl Tian Tong Lee

Dozens of ESG funds sold more than $1 billion worth of Tencent Holdings Ltd. shares in the past six months, as concerns about Chinese censorship and regulatory risks grew.

Sustainalytics, an ESG research and ratings company, in late August downgraded Tencent to the category of “non-compliant” with UN principles.

Source: Bloomberg

https://finance.yahoo.com/news/tencent- ... 01470.html

[winston]

vested

Tencent beats fourth-quarter profit estimates, as president Martin Lau Chi-ping prepares to rotate off the board

The Hong Kong-listed company’s profit for the three months to the end of December was up 12 per cent from 94.9 billion yuan in the same period in 2021

For the full year, Tencent reported a net profit of 188.2 billion yuan, down 16 per cent compared to the previous year, but it still beats estimates

by Iris Deng

Better-than-expected net income of 106.3 billion yuan (US$15.4 billion) in the fourth quarter of 2022.

Source: SCMP

https://www.scmp.com/tech/article/32144 ... 9599f1b7ba

[winston]

vested

Tencent Q4 recovery spurs hope for 2023

4Q revenue inched 1 percent higher.

Online advertising revenue dropped by 7 percent to 82.7 billion yuan with social and other advertising revenue down by 4 percent.

But the gaming and social media leader reported a 15 percent jump in online advertising revenue in the final three months of 2022, as its TikTok-style video feature drew marketers.

Source: The Standard

https://www.thestandard.com.hk/section- ... e-for-2023