External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Tencent will report 2Q23 results on 16 Aug.</li><li>We expect a strong quarter with total revenue/non-IFRS net income up by 12/25% YoY to RMB149.9/35.2bn, driven by solid recovery of ads/fintech businesses and operating leverage.</li><li>Several developing catalysts will support Tencent’s business growth and valuation recovery: 1) solid consumer internet revenue growth provides room for operating leverage improvement; 2) Tencent’s MaaS solutions and AI deployment will not only capture the rising enterprise demand for model training and AI applications, but also become growth multipliers for its own business lines. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Tencent will report 2Q23 results on 16 Aug.We expect a strong quarter with total revenue/non-IFRS net income up by 12/25% YoY to RMB149.9/35.2bn, driven by solid recovery of ads/fintech businesses and operating leverage.Several developing catalysts will support Tencent’s business growth and valuation recovery: 1) solid consumer internet revenue growth provides room for operating leverage improvement; 2) Tencent’s MaaS solutions and AI deployment will not only capture the rising enterprise demand for model training and AI applications, but also become growth multipliers for its own business lines. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Tencent (700 HK) – 2Q23 Preview: Expecting Strong Recovery Ahead

<ul><li>Tencent disclosed the latest progress of its industry LLM (large langue model) solution on 19 Jun.</li><li>The company will offer a comprehensive set of MaaS solutions that enable enterprises to adopt LLM and AI applications at an affordable cost.</li><li>We expect Tencent to benefit from the LLM development: 1) Tencent’s MaaS offering will create new revenue stream and drive growth of Tencent Cloud revenue in the long term; 2) flagship SaaS products like Tencent Meeting will soon adopt LLM capabilities to improve user experience; 3) LLM will be applied to Tencent’s other businesses (e.g. gaming and ads) and become a growth multiplier. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Tencent disclosed the latest progress of its industry LLM (large langue model) solution on 19 Jun.The company will offer a comprehensive set of MaaS solutions that enable enterprises to adopt LLM and AI applications at an affordable cost.We expect Tencent to benefit from the LLM development: 1) Tencent’s MaaS offering will create new revenue stream and drive growth of Tencent Cloud revenue in the long term; 2) flagship SaaS products like Tencent Meeting will soon adopt LLM capabilities to improve user experience; 3) LLM will be applied to Tencent’s other businesses (e.g. gaming and ads) and become a growth multiplier. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Tencent MaaS -  Offering One-Stop Industry LLM Solutions

Thematic (Sector/Industry)

<ul><li>China’s total ad spending saw YoY recovery in 2Q23, due to both low base in 2Q22 and consumption recovery.</li><li>Total ad spend returned to positive growth of 15% YoY in April 2023, per CTR.</li><li>However, overall ad spend has yet to recover to the 2021 level, with ad spending in Apr 2023 only reached 92% of the ad spend level in Apr 2021. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China’s total ad spending saw YoY recovery in 2Q23, due to both low base in 2Q22 and consumption recovery.Total ad spend returned to positive growth of 15% YoY in April 2023, per CTR.However, overall ad spend has yet to recover to the 2021 level, with ad spending in Apr 2023 only reached 92% of the ad spend level in Apr 2021. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Internet – 2Q23 online advertising: recovery in cautious mode

<ul><li>Tencent reported 1Q23 financial results on 17 May.</li><li>Total revenue was up by 11% YoY to RMB150.0bn in 1Q23, in line with consensus/CMBI estimates of RMB146/148bn.</li><li>Non-IFRS operating income grew by 32% YoY to RMB48.4bn in 1Q23 and beat consensus estimate by 13%, boosted by the reaccelerating top-line growth, expanding GPM and operating leverage. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Tencent reported 1Q23 financial results on 17 May.Total revenue was up by 11% YoY to RMB150.0bn in 1Q23, in line with consensus/CMBI estimates of RMB146/148bn.Non-IFRS operating income grew by 32% YoY to RMB48.4bn in 1Q23 and beat consensus estimate by 13%, boosted by the reaccelerating top-line growth, expanding GPM and operating leverage. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Tencent  (700 HK) – Solid Recovery Across All Business Lines

<ul><li>China’s online game market revenue declined by 15% YoY but increased by 16% QoQ to RMB67.5bn in 1Q23, according to CNG.</li><li>We saw an early recovering sign in March 2023, with monthly game market revenue down by only 3% YoY (versus -23%/17% YoY in Feb/Jan), thanks to more quality game launches.</li><li>Looking ahead, we are positive that online game market revenue will recover to positive YoY growth in 2Q23E, supported by the normalisation of game license approval and the launch of highly-anticipated titles like Tencent’s Metal Slug: Awakening and miHoYo’s Honkai: Star Rail. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China’s online game market revenue declined by 15% YoY but increased by 16% QoQ to RMB67.5bn in 1Q23, according to CNG.We saw an early recovering sign in March 2023, with monthly game market revenue down by only 3% YoY (versus -23%/17% YoY in Feb/Jan), thanks to more quality game launches.Looking ahead, we are positive that online game market revenue will recover to positive YoY growth in 2Q23E, supported by the normalisation of game license approval and the launch of highly-anticipated titles like Tencent’s Metal Slug: Awakening and miHoYo’s Honkai: Star Rail. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Internet – 1Q23 online game market recap

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)

Tencent (700 HK) – 2Q23 Preview: Expecting Strong Recovery Ahead

We expect a strong quarter with total revenue/non-IFRS net income up by 12/25% YoY to RMB149.9/35.2bn, driven by solid recovery of ads/fintech...

CMB International

Tencent MaaS - Offering One-Stop Industry LLM Solutions

The company will offer a comprehensive set of MaaS solutions that enable enterprises to adopt LLM and AI applications at an affordable cost.

CMB International

China Internet – 2Q23 online advertising: recovery in cautious mode

China’s total ad spending saw YoY recovery in 2Q23, due to both low base in 2Q22 and consumption recovery. Total ad spend returned to positive...

CMB International

Tencent (700 HK) – Solid Recovery Across All Business Lines

Tencent reported 1Q23 financial results on 17 May. Total revenue was up by 11% YoY to RMB150.0bn in 1Q23, in line with consensus/CMBI estimates of...

CMB International

China Internet – 1Q23 online game market recap

We saw an early recovering sign in March 2023, with monthly game market revenue down by only 3% YoY (versus -23%/17% YoY in Feb/Jan), thanks to...

CMB International

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