Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Equity Bottom-Up

<ul>
<li>We prepared high beta and low risk recommendations for 2024:</li>
<li>With 2024 YE as horizon, we recommend JD.com, JD Logistics, JDHealth, Tencent and Luckin.</li>
<li>With 1H24 as horizon, we recommend KE Holdings, NetEase and Kuaishou.</li>
</ul>


We prepared high beta and low risk recommendations for 2024:
With 2024 YE as horizon, we recommend JD.com, JD Logistics, JDHealth, Tencent and Luckin.
With 1H24 as horizon, we recommend KE Holdings, NetEase and Kuaishou.


2024 High Conviction Idea - High Beta and Low Risk Recommendations

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>In the IPO space, <a href="https://www.smartkarma.com/entities/tata-technologies" target="_blank" data-smartkarma-citation="entities:23700:1" rel="noopener">Tata Technologies</a> didn't disappoint Tata Group fans, at least on the subscription front.</li>
<li>The placements continued to flow in this week as well in Japan.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
In the IPO space, Tata Technologies didn't disappoint Tata Group fans, at least on the subscription front.
The placements continued to flow in this week as well in Japan.


ECM Weekly (26th Nov 2023) - Zeekr, Cirrus, Tata Tech, IREDA, FedBank, Juniper, GS Yuasa, AZ Com

<ul>
<li>Tencent reported C3Q23 revenue, non-IFRS operating profit and IFRS net income (2.4%), 8.9% and 17% versus our estimates. The bottom-line beat was mainly due to the growth of high-margin businesses;  </li>
<li>We view commercialization of Video Accounts and expansion of overseas gaming are still at early stage.</li>
<li>Progression of these high-margin, high-quality business will persist into 2024;  We maintain BUY but raise target price to HK$ 432. </li>
</ul>


Tencent reported C3Q23 revenue, non-IFRS operating profit and IFRS net income (2.4%), 8.9% and 17% versus our estimates. The bottom-line beat was mainly due to the growth of high-margin businesses;  
We view commercialization of Video Accounts and expansion of overseas gaming are still at early stage.
Progression of these high-margin, high-quality business will persist into 2024;  We maintain BUY but raise target price to HK$ 432. 


[Tencent(700 HK, BUY, TP HK$432)Target Price Change]: More Sustained Growth Doesn’t Mean Slow Growth

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> ’s 3Q2023 revenues fell marginally below consensus, however, OP beat consensus estimates. Domestic games returned to growth after a flat quarter in 2Q2023.</li>
<li>Both Online Advertising and Fintech businesses have seen strong increase in top line with GPM approaching new highs for the two businesses.</li>
<li>Though Tencent’s earnings show a recovery, we would remain cautious given the slowdown in Chinese economy and Tencent failing to make into new game approval list since July 2023.</li>
</ul>



Tencent (700 HK) ’s 3Q2023 revenues fell marginally below consensus, however, OP beat consensus estimates. Domestic games returned to growth after a flat quarter in 2Q2023.
Both Online Advertising and Fintech businesses have seen strong increase in top line with GPM approaching new highs for the two businesses.
Though Tencent’s earnings show a recovery, we would remain cautious given the slowdown in Chinese economy and Tencent failing to make into new game approval list since July 2023.


Tencent: Domestic Gaming Returns to Growth

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

<ul>
<li>Advertising, international game, and Fintech grew by two digits, but domestic entertainments were stagnant.</li>
<li>The gross margins of all business lines improved and admin expense as percentage of total revenue decreased.</li>
<li>We believe the stock has an upside of 30% for the year end of 2024.</li>
</ul>


Advertising, international game, and Fintech grew by two digits, but domestic entertainments were stagnant.
The gross margins of all business lines improved and admin expense as percentage of total revenue decreased.
We believe the stock has an upside of 30% for the year end of 2024.


Tencent (700 HK): Raise Margin Estimates After 3Q23 Results, 30% Upside, Buy

China

Tencent Holdings Limited operates as an investment holding company. The Company, through its subsidiaries, provides Internet and mobile value-added services (VAS), online advertising, and e-commerce transactions. Tencent Holdings offers services to users worldwide.

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Tencent (700 HK)

2024 High Conviction Idea - High Beta and Low Risk Recommendations

"2024 high-beta and low-risk recommendations: JD.com, JD Logistics, JDHealth, Tencent, Luckin for 2024 YE horizon. KE Holdings, NetEase, Kuaishou...

Blue Lotus Research Institute

ECM Weekly (26th Nov 2023) - Zeekr, Cirrus, Tata Tech, IREDA, FedBank, Juniper, GS Yuasa, AZ Com

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

[Tencent(700 HK, BUY, TP HK$432)Target Price Change]: More Sustained Growth Doesn’t Mean Slow Growth

Tencent beats revenue and profit estimates, driven by high-margin businesses. Video Accounts and overseas gaming expansion still in early stages....

Blue Lotus Research Institute

Tencent: Domestic Gaming Returns to Growth

Tencent's domestic games returned to growth in 3Q2023 after a flat 2Q, social networks remained flat. Key highlight of the quarter was strong...

Shifara Samsudeen, ACMA, CGMA

Tencent (700 HK): Raise Margin Estimates After 3Q23 Results, 30% Upside, Buy

Advertising, international game, and Fintech grew by two digits, but domestic entertainments were stagnant. The gross margins of all business lines...

Ming Lu

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

2024 High Conviction Idea - High Beta and Low Risk Recommendations

​"2024 high-beta and low-risk recommendations: JD.com, JD Logistics, JDHealth, Tencent, Luckin for 2024 YE horizon. KE Holdings, NetEase, Kuaishou...

Blue Lotus Research Institute

ECM Weekly (26th Nov 2023) - Zeekr, Cirrus, Tata Tech, IREDA, FedBank, Juniper, GS Yuasa, AZ Com

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

[Tencent(700 HK, BUY, TP HK$432)Target Price Change]: More Sustained Growth Doesn’t Mean Slow Growth

​Tencent beats revenue and profit estimates, driven by high-margin businesses. Video Accounts and overseas gaming expansion still in early stages....

Blue Lotus Research Institute

Tencent: Domestic Gaming Returns to Growth

​Tencent's domestic games returned to growth in 3Q2023 after a flat 2Q, social networks remained flat. Key highlight of the quarter was strong...

Shifara Samsudeen, ACMA, CGMA

Tencent (700 HK): Raise Margin Estimates After 3Q23 Results, 30% Upside, Buy

Advertising, international game, and Fintech grew by two digits, but domestic entertainments were stagnant. The gross margins of all business lines...

Ming Lu

"2024 high-beta and low-risk recommendations: JD.com, JD Logistics, JDHealth, Tencent, Luckin for 2024 YE horizon. KE Holdings, NetEase, Kuaishou...

Tencent beats revenue and profit estimates, driven by high-margin businesses. Video Accounts and overseas gaming expansion still in early stages....

Tencent's domestic games returned to growth in 3Q2023 after a flat 2Q, social networks remained flat. Key highlight of the quarter was strong...