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>Underpinned by the recovering games business and solid ad performance, we expect Tencent to continue to deliver solid revenue and earnings growth, with total revenue/non-IFRS net income up by 8%/33% YoY to RMB160.9bn/49.2bn in 2Q24E (vs. consensus of RMB161.8bn/48.1bn).</li><li>DnF Mobile’s performance was ahead of market expectation after its launch in May, but we expect it to mainly drive 2H24E games revenue growth given its relatively long deferral period.</li><li>Ad business was resilient on strong Weixin ad performance, while fintech business remained under pressure in 2Q24 amid macro uncertainty, in our view. </li></ul><p><em>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.</em></p>

Underpinned by the recovering games business and solid ad performance, we expect Tencent to continue to deliver solid revenue and earnings growth, with total revenue/non-IFRS net income up by 8%/33% YoY to RMB160.9bn/49.2bn in 2Q24E (vs. consensus of RMB161.8bn/48.1bn).DnF Mobile’s performance was ahead of market expectation after its launch in May, but we expect it to mainly drive 2H24E games revenue growth given its relatively long deferral period.Ad business was resilient on strong Weixin ad performance, while fintech business remained under pressure in 2Q24 amid macro uncertainty, in our view. 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) - Earnings Growth Stability Continues

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

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.

<ul>
<li>Douyin’ GMV increased by 300% YoY in the “June 18” sales season.</li>
<li>The revenue of a pre-IPO restaurant chain, Green Tea, increased by 55% in 2023.</li>
<li>Alibaba’s supermarket chain, Freshippo, opened 12 new stores in June.</li>
</ul>


Douyin’ GMV increased by 300% YoY in the “June 18” sales season.
The revenue of a pre-IPO restaurant chain, Green Tea, increased by 55% in 2023.
Alibaba’s supermarket chain, Freshippo, opened 12 new stores in June.


China Consumption Weekly (1 Jul 2024): Douyin, Green Tea, Alibaba, Tencent, Haidilao

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

<ul>
<li>China announced game approval for the June batch. The number of games approved remained at a higher level than 2023.</li>
<li>The pace of China game approval appears to have accelerated to the same level as pre-tightening, though the number of approvals appears to be slower than March.</li>
<li>Of companies that we are monitoring, Tencent and iDreamSky clinched one approval each.</li>
</ul>


China announced game approval for the June batch. The number of games approved remained at a higher level than 2023.
The pace of China game approval appears to have accelerated to the same level as pre-tightening, though the number of approvals appears to be slower than March.
Of companies that we are monitoring, Tencent and iDreamSky clinched one approval each.


Tencent/Netease: One Game Approval for Tencent in June

<ul>
<li>Tuniu’s revenue grew by 71% YoY in 1Q24, as the company benefited from the travel industry’s recovery.</li>
<li>Smart Share Global’s revenue plunged by 52% YoY in 1Q24 due to fewer customers in shopping malls.</li>
<li>PDD plans to price products on behalf of retailers, which reflects the severe competition in e-commerce.</li>
</ul>


Tuniu’s revenue grew by 71% YoY in 1Q24, as the company benefited from the travel industry’s recovery.
Smart Share Global’s revenue plunged by 52% YoY in 1Q24 due to fewer customers in shopping malls.
PDD plans to price products on behalf of retailers, which reflects the severe competition in e-commerce.


China Consumption Weekly (10 Jun 2024): Tencent, PDD, Meituan, NIO, Tuniu, Smart Share

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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>On the IPO front, we looked at <a href="https://www.smartkarma.com/entities/guzman-y-gomez" target="_blank" data-smartkarma-citation="entities:43656:1" rel="noopener">Guzman Y Gomez (0817833D AU),</a> <a href="https://www.smartkarma.com/entities/quantumpharm-inc" target="_blank" data-smartkarma-citation="entities:40369:1" rel="noopener">QuantumPharm (QUP HK)</a> and <a href="https://www.smartkarma.com/entities/webtoon-entertainment-inc" target="_blank" data-smartkarma-citation="entities:43652:1" rel="noopener">Webtoon Entertainment (WBTN US)</a> this week.</li>
<li>On the placement front, there were a few deals across Hong Kong, Australia and 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.
On the IPO front, we looked at Guzman Y Gomez (0817833D AU), QuantumPharm (QUP HK) and Webtoon Entertainment (WBTN US) this week.
On the placement front, there were a few deals across Hong Kong, Australia and Japan.


ECM Weekly (10th June 2024) - Webtoon, Shift Up, QuantumPharm, Guzman, Kakaopay, Telix, Yankuang

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 Holdings (ADR) (TCEHY US)

Tencent (700 HK) - Earnings Growth Stability Continues

Underpinned by the recovering games business and solid ad performance, we expect Tencent to continue to deliver solid revenue and earnings growth

CMB International

China Consumption Weekly (1 Jul 2024): Douyin, Green Tea, Alibaba, Tencent, Haidilao

Douyin’ GMV increased by 300% YoY in the “June 18” sales season. Pre-IPO restaurant chain, Green Tea’s revenue increased by 55% in 2023. Alibaba’s...

Ming Lu

Tencent/Netease: One Game Approval for Tencent in June

We analyzed game approval by Chinese NPPA. Of the companies that we are tracking, Tencent received one approval while iDreamSky also received one...

Ke Yan, CFA, FRM

ECM Weekly (10th June 2024) - Webtoon, Shift Up, QuantumPharm, Guzman, Kakaopay, Telix, Yankuang

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

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Tencent (700 HK) - Earnings Growth Stability Continues

Underpinned by the recovering games business and solid ad performance, we expect Tencent to continue to deliver solid revenue and earnings growth

CMB International

China Consumption Weekly (1 Jul 2024): Douyin, Green Tea, Alibaba, Tencent, Haidilao

Douyin’ GMV increased by 300% YoY in the “June 18” sales season. Pre-IPO restaurant chain, Green Tea’s revenue increased by 55% in 2023. Alibaba’s...

Ming Lu

Tencent/Netease: One Game Approval for Tencent in June

We analyzed game approval by Chinese NPPA. Of the companies that we are tracking, Tencent received one approval while iDreamSky also received one...

Ke Yan, CFA, FRM

China Consumption Weekly (10 Jun 2024): Tencent, PDD, Meituan, NIO, Tuniu, Smart Share

Tuniu’s revenue grew by 71% YoY in 1Q24. Smart Share Global’s revenue plunge by 52% YoY in 1Q24. PDD plans to price products on behalf of retailers.

Ming Lu

ECM Weekly (10th June 2024) - Webtoon, Shift Up, QuantumPharm, Guzman, Kakaopay, Telix, Yankuang

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