Tencent 0700 04 (Oct 21 - Dec 25)

[winston]

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

[winston]

not vested

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

[winston]

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

[winston]

not vested

<Results>TENCENT (00700.HK) 1Q Non-IFRS NP Grows 54% YoY to RMB50.265B, Beating Expectations

TENCENT (00700.HK) announced its results for 1Q24 ended March.

The group achieved a net profit of RMB41.889 billion, hiking 62.1% YoY, higher than the upper limit of the forecast range by 7 brokers as summarised by our reporters, which ranged from RMB31.618 billion to RMB36.096 billion.

Basic EPS was RMB4.479.

Non-IFRS net profit for the quarter reached RMB50.265 billion, lifting 54.5% YoY, also higher than the upper limit of the forecast range by the 17 brokers consolidated by our reporters, which ranged from RMB39.3 billion to RMB44.6 billion.

Non-IFRS basic EPS was RMB5.375.

The group recorded revenue of about RMB159.501 billion for the quarter, elevating 6.3% YoY. It slightly exceeded the upper limit of the forecast range by the 17 brokers consolidated by our reporters, which was RMB155.215 billion to RMB159.3 billion.

By business segment, revenue from value-added services (VAS) business dropped about 0.9% YoY to RMB78.6 billion.

Driven by Supercell's games and PUBG MOBILE, total game revenue in the international market mounted 34% YoY during the period, while total game revenue in the domestic market grew by 3%.

TENCENT noted that during 1Q24, several of its leading games in China and International markets started to benefit from team reorganisations it put in place, resulting in an increase in games gross receipts and creating a foundation for games revenue to resume growth in future quarters.

Revenue from online advertising business grew around 26% YoY to RMB26.5 billion.

Revenue from financial technology and business services business reached RMB52.3 billion, escalating by about 7%.

Total user time spent for Video Accounts spiked more than 80% YoY, while that for Mini Programs inclined over 20% YoY.

Long-form video subscriptions for Tencent Video elevated 8% YoY to 116 million.

As of end-March, the combined amount of monthly active users (MAU) of Weixin and WeChat grew 3% YoY to 1.359 billion.

Executing on its commitment to return excess capital to shareholders, TENCENT said it has stepped up its buyback plan, and is on track to repurchase over HK$100 billion of its shares in 2024, while also paying an increased dividend.

It is also investing in AI technology, platform enhancements and high-production-value content.

Source: AAStocks Financial News

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

[winston]

Earnings First Take: 1Q24 core earnings increased 54%, above market expectations

Revenue increased by 6% y/y in 1Q24, with online ad and fintech revenue increasing by 26% and 7%, respectively

Non-IFRS net profit increased by 54% y/y, beating expectations, thanks to 7ppt gross margin expansion

Online advertising the key growth driver, supported by Video Accounts and AI-powered technology; Maintain BUY
TP: HK$525

https://www.dbs.com/insightsdirect/comp ... ecid=19578

[winston]

not vested

Tencent
Gross profit margin widened 7.1% in 1Q24

Tencent’s 1Q24 revenue grew by 6% yoy and 3% qoq to Rmb159.5bn, in line with our expectations, driven by strong growth of online ad business.

Non-IFRS net profit rose by 54% yoy and 18% qoq to Rmb50.3bn in 1Q24, better than we expected, mainly driven by the GPM expansion of 7.1% pts yoy.

We forecast revenue to grow 7.3% yoy and non-IFRS NP to rise 24.6% yoy in FY24F, driven by strong growth of online ads and recovery of gaming business.

Reiterate Add with a higher DCF-based TP of HK$515.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... C81E452396

[winston]

Tencent Holdings (700 HK)
1Q24: Strong Earnings Beat; Game Revenue Misses Expectations; Stepping up Repurchase Plan

Tencent’s 1Q24 results came in slightly below our expectation.

Revenue grew 6.3% yoy to Rmb159.5b, in line with consensus estimate.

Gross margin expanded 7ppt yoy to 52.6%, better than consensus forecast.

Non-IFRS operating profit recovered to Rmb58.6b, while non-IFRS operating margin rose to 36.8%, better than our estimate.

Non-IFRS net profit was elevated by 54.5% yoy, 17% above consensus estimate on a positive shift in revenue mix.

Maintain BUY with a higher target price of HK$454.00.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

<Research>JPM Hikes TENCENT (00700.HK) TP to $480; Multiple Surprises May Further Propel Shr Price

JPMorgan noted in a report that the 1Q24 results of TENCENT (00700.HK)were positive.

Improved domestic game revenues and strong advertising revenue growth are expected to boost investor confidence in the company's core earnings outlook and medium- to long-term growth momentum, while also acting as a catalyst to drive the stock price higher in the near future.

Considering TENCENT's solid performance, healthy growth prospects, strong return on capital for shareholders and attractive valuation, JPM remained bullish on the company.

The broker hiked its target price on TENCENT from $410 to $480 and maintained its Overweight rating.

JPM highlighted that TENCENT's online game revenue remained flat in 1Q24 given the high base in 1Q23, and the broker expected online game revenue to resume growth in 2Q, driven by deferred revenue and new games.

Meanwhile, JPM also estimated advertising revenue to also continue growing this year, and currently forecasted TENCENT's revenue to grow by 12% and 19% YoY in 2Q and full-year 2024 respectively.

Source: AAStocks Financial News

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

[winston]

Tech titan's stock unfazed by Prosus move

Prosus said it deposited 96 million shares of Tencent into the clearing system in Hong Kong to support its own share buyback plan. Prosus has been paring stakes in Tencent since mid-2022.

Source: The Standard

https://www.thestandard.com.hk/section- ... rosus-move

[behappyalways]

Tencent is back as king, making 2 billion a day with AI?!
TSMC follows Huida and sees the thousand-dollar mark?!

騰訊王者歸來 靠AI一天賺20億?! 台積跟隨輝達 上看千元大關?!｜20240525｜@inewsplus

https://m.youtube.com/watch?v=GRbkEf_9QSs