Tencent 0700 03 (Aug 18 - Sep 21)

[winston]

vested

Tencent (TCHEY)

Ongoing intellectual property wars between the U.S. and China is proving less threatening. On October 27, the U.S. appeals court rejected an immediate ban of Tencent-owned WeChat. This chat app rivals Facebook Messenger, WhatsApp and other popular American-based instant messengers.

The three-judge panel ruled that the government did not show it would “suffer an imminent, irreparable injury during the pendency of this appeal, which is being expedited.”

Tencent continues to grow its advertising, entertainment, and messaging business. In the March 2020 quarter, it posted revenue growing 26% Y/Y.

With the pandemic waning in Asian regions, revenue will only continue to rise. Next year, that will continue as the company further invests in the gaming market and acquires firms.

Source: Investor Place

[winston]

Tencent Holdings (700 HK)
3Q20: Game Revenue Growth Continued To Accelerate; Solid Margin Improvement

Tencent reported another solid set of results. 3Q20 revenue came in at Rmb125.4b, in line with our and consensus estimates, driven by solid growth from online gaming segment.

Gross margin improved by 1.5ppt yoy to 45.2%, and is also in line with our and street estimates.

Non-GAAP net profit recorded 32% yoy growth to Rmb32.3b, 2% above consensus estimate.

Maintain BUY with a higher target price of HK$675.00 from HK$606.00.

Source: UOBKH

https://research.uobkayhian.com/content ... ec9deb96fc

[winston]

vested

Brokers' Latest Ratings, TPs on TENCENT (00700.HK) Post Results (Table)

Brokers│Ratings│TPs (HK$)
Macquarie│Outperform│815->846
Citigroup│Buy│649->734
Jefferies│Buy│651->721
Daiwa│Buy│710
Goldman Sachs│Buy│678->705
UBS│Buy│650->700
Nomura│Buy│703->690
CCBI│Outperform│620->689
Credit Suisse│Outperform│683
BofA Securities│Buy│624->681
JPMorgan│Overweight│620->655
Morgan Stanley│Overweight│650
-------------------------


Brokers│Views

Macquarie│game biz outlook strong; ad & fintech biz resilient
Citigroup│result driven by mobile game beat
Jefferies│biz diversified with clear strategy, solid execution
Daiwa│mobile game biz far beats
Goldman Sachs│game biz growth faster; lifts TP, keeps Buy rating
UBS│mobile game growth robust, to stay strong in near term
Nomura│QoQ result beat driven by shiny game rev
CCBI│mobile game biz still on fast track; online ad growth to speed up
Credit Suisse│game biz beats; profit growth highly visible with multiple result catalysts
BofA Securities│no material strategy change yet; more execution changes
JPMorgan│QoQ NP slightly beats
Morgan Stanley│QoQ result slightly beats on game biz

Source: AAStocks Financial News

[winston]

vested

Tencent: WeChat parent is a leader in online gaming, social network, music, and video streaming.

The company’s focus on online entertainment “can be less relevant to antitrust scrutiny,” MS analysts said.

They expect the impact on Tencent to be “relatively manageable” unless it misuses data across platforms or blocks competitors’ access to the WeChat ecosystem.

The new rules could create future hurdles for Tencent when it comes to mergers and acquisitions.

Source: Benzinga

[winston]

3Q20 results in line with expectations

Tencent’s 3Q20 results were in line with market expectations.

Online games reported strong top-line growth in 3Q20.

Online advertising showed a recovery but cloud business reported slower growth.

Management shared its initial views on the consultation paper for the Anti-Monopoly law. The impact is expected to be manageable.

Tencent’s creditech business operates under Webank, which fully complies with the regulations on banks.

Tencent is an outperformer YTD, and concern about the anti-monopoly law may continue to create selling pressure.

We still hold a constructive view of the Company, as we believe that Tencent will be one of the least impacted names.

Reiterate ADD with a new DCF-based target price of HK$652.7.

Patient investors may wait for share price weakness as a re-entry point.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 37D06766E8

[winston]

not vested

TENCENT(700)

Analysis：
Tencent Holdings Limited is an investment holding company that mainly provides value-added services and online advertising services.

The company operates through three major divisions.

The value-added services segment mainly includes online/mobile games, community value-added services and applications provided by the Internet and mobile platforms.

The online advertising segment mainly includes performance advertising and display advertising.

Other segments mainly include payment-related services, cloud services and other services.

We believe that recent regulatory actions may affect investors` perceptions of Chinese Internet companies in the short term but the company`s long-term business prospects will not be affected.

We believe that investors can take advantage of Tencent`s pullback to absorb appropriately for a mid to long-term deployment.

Strategy：
Buy-in Price: $510, Target Price: $570, Cut Loss Price: $480

Source: Phillips

[winston]

not vested

4Q20: Pandemic-proof Results, Record Breaking Market Cap In The Making

Tencent reported another solid set of results, with 4Q20 revenue of Rmb133.7b in line
with our and consensus estimates.

Gross profit was Rmb58.9b, up 28% yoy, with gross margin recorded at 44.0%, expanding 0.5ppt yoy, on higher margin from online advertising.

Non-GAAP operating profit came in at Rmb38.1b, up 26% yoy.

Non-GAAP net profit margin was 24.8%, flattish yoy, in line with street estimates.

Maintain BUY with a higher target price of HK$832.00.

Source: UOBKH

https://research.uobkayhian.com/content ... 149d539700

[winston]

not vested

2020 results: revenue growth offset by higher OPEX

Tencent’s 2020 results were lower than our and market expectations due to higher
operating expenses. Operating profit excluding other gains was 4% lower than our
expectation.

This miss in online games revenue was offset by stronger online advertising and other
revenue in 4Q20.

We lowered our earnings forecasts slightly for 2021F and 2022F after the 2020 results
announcement.

Management gave its view on recent news reports on new rules and regulations
during a results conference call.

Concern about anti-trust laws may continue to create selling pressure. We still hold a
constructive view of the Company, as we believe that the impact will be manageable
for Tencent.

Reiterate ADD with a new DCF-based target price of HK$692.9. Patient
investors may treat any share price weakness as a re-entry point.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 61B1547F48

[winston]

not vested

Tencent Holdings (700 HK) - Solid ecosystem and prudent risk management

Tencent is a leading internet company in China, and it remains well-positioned to capture and monetize significant opportunities in China’s mobile internet growth story with its comprehensive ecosystem that ranges from games to social networks.

The group is also focused on its Industrial Internet strategy, which will allow it to export key capabilities amassed from its consumption internet business to its enterprise clients (2B). BUY.

Source: OCBC

[winston]

not vested

Mar 25, 2021

<Research Report>G Sachs Cuts TENCENT (00700.HK) TP to $920; Reiterated Buy

TENCENT (00700.HK)'s 4Q20 results were in line, with total revenue of RMB133.7 billion, up 26% YoY, 1.3%/ 1.9% above Goldman Sachs's estimate/ consensus.

Non-GAAP operating profit was RMB38.1 billion, up 26% YoY, 1% ahead of the broker's assumption.

Goldman Sachs said TENCENT's ad business accelerated, viewing concern should not be overdone even though shares had corrected approximately 19% from its peak in January after tightening regulatory measures and market volatility.

The tech giant is expanding library of game IP with robust demand for Weixin moments etc..

The rating was reiterated at Buy with target cut to $920 from $929.

Source: AAStocks Financial News