Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>SOUTHBOUND was again a net buyer, for HK$15.2bn this week (now 27wks in a row of net buying), on smallish two-way volumes. Better than the previous month but still low.</li>
<li>Bank net buying, which had spiked the previous week, didn't follow through.</li>
<li>There were three ETFs in the top 15 SOUTHBOUND net buys this past week, reversing last week, which reversed the week before's flows.</li>
</ul>


SOUTHBOUND was again a net buyer, for HK$15.2bn this week (now 27wks in a row of net buying), on smallish two-way volumes. Better than the previous month but still low.
Bank net buying, which had spiked the previous week, didn't follow through.
There were three ETFs in the top 15 SOUTHBOUND net buys this past week, reversing last week, which reversed the week before's flows.


HK Connect SOUTHBOUND Flows (To 9 Aug 2024); Tencent the Big Buy Again

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.

Equity Bottom-Up

<ul>
<li>The retail deliveries of NEV (new energy vehicle) increased by 37% YoY in July.</li>
<li>One of Alibaba’s supermarket chains, Freshippo, will sell its OEM goods, on Lazada.</li>
<li>Tencent will formally start the game, Arena Breakout: Infinite, in August.</li>
</ul>


The retail deliveries of NEV (new energy vehicle) increased by 37% YoY in July.
One of Alibaba’s supermarket chains, Freshippo, will sell its OEM goods, on Lazada.
Tencent will formally start the game, Arena Breakout: Infinite, in August.


China Consumption Weekly (12 Aug 2024): Geely, Li Auto, JD.com, Alibaba, Tencent, DDL

<ul>
<li>We believe total revenue will grow by 9% YoY and game revenue began to rise in 2Q24.</li>
<li>We believe the operating margin will continue to improve YoY in 2Q24 after the seven-year high in 1Q24.</li>
<li>We set the upside at 35% and the price target at HK$496 for the end of 2025.</li>
</ul>


We believe total revenue will grow by 9% YoY and game revenue began to rise in 2Q24.
We believe the operating margin will continue to improve YoY in 2Q24 after the seven-year high in 1Q24.
We set the upside at 35% and the price target at HK$496 for the end of 2025.


Tencent (700 HK): 2Q24 Preview, Both Growth and Margin to Improve

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.

Equity Capital Markets

<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> reported 4Q results today. Both revenues and OP increased 7.1% and 42.0% YoY, however, both revenue and OP fell below consensus estimates.</li>
<li>The company also announced an increase to 2023 dividends and more than doublethe size of the company's share buyback in 2024 compared to 2023.</li>
<li>We expect Internet VAS to grow at single-digits in 2024, however, high-margin new products to help boost margins in 2024.</li>
</ul>



Tencent (700 HK) reported 4Q results today. Both revenues and OP increased 7.1% and 42.0% YoY, however, both revenue and OP fell below consensus estimates.
The company also announced an increase to 2023 dividends and more than doublethe size of the company's share buyback in 2024 compared to 2023.
We expect Internet VAS to grow at single-digits in 2024, however, high-margin new products to help boost margins in 2024.


Tencent 4Q2023: Gaming Declines Yet Again, Margins Have Further Upside

<ul>
<li>SOUTHBOUND was again a net buyer, for HK$9.2bn this week (now 26wks in a row of net buying), on smallish two-way volumes.</li>
<li>I've thought national team was buying banks for months. They were gone for a couple of weeks. Feels like they are back. </li>
<li>There were three ETFs in the top five SOUTHBOUND sells this past week, reversing last week. Energy, Utilities, Telecoms bought. </li>
</ul>


SOUTHBOUND was again a net buyer, for HK$9.2bn this week (now 26wks in a row of net buying), on smallish two-way volumes.
I've thought national team was buying banks for months. They were gone for a couple of weeks. Feels like they are back. 
There were three ETFs in the top five SOUTHBOUND sells this past week, reversing last week. Energy, Utilities, Telecoms bought. 


HK Connect SOUTHBOUND Flows (To 2 Aug 2024); ETFs Get Sold; Tencent, SOEs, Utilities Bought

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)

HK Connect SOUTHBOUND Flows (To 9 Aug 2024); Tencent the Big Buy Again

27th week in a row that SOUTHBOUND has been a net buyer of HK-listed shares. And for the second time in a row, Tencent was the top net buy. SB net...

Travis Lundy

China Consumption Weekly (12 Aug 2024): Geely, Li Auto, JD.com, Alibaba, Tencent, DDL

The retail deliveries of NEV increased by 37% YoY in July. Freshippo will sell its OEM goods on Lazada. Tencent will formally start the game...

Ming Lu

Tencent (700 HK): 2Q24 Preview, Both Growth and Margin to Improve

We believe total revenue will grow by 9% YoY and game revenue began to rise in 2Q24. We believe the operating will continue to improve YoY in 2Q24....

Ming Lu

Tencent 4Q2023: Gaming Declines Yet Again, Margins Have Further Upside

Tencent's 4Q revenue and OP grew YoY, but below consensus estimates. Games biz declined again after seeing growth in the last 3-quarters. New high...

Shifara Samsudeen, ACMA, CGMA

HK Connect SOUTHBOUND Flows (To 2 Aug 2024); ETFs Get Sold; Tencent, SOEs, Utilities Bought

SOUTHBOUND flows for HK Connect were to the net buy side for the 26th week in a row. SOEs in Energy, Telcos, and Utilities were strong. Banks too....

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HK Connect SOUTHBOUND Flows (To 9 Aug 2024); Tencent the Big Buy Again

27th week in a row that SOUTHBOUND has been a net buyer of HK-listed shares. And for the second time in a row, Tencent was the top net buy. SB net...

Travis Lundy

China Consumption Weekly (12 Aug 2024): Geely, Li Auto, JD.com, Alibaba, Tencent, DDL

The retail deliveries of NEV increased by 37% YoY in July. Freshippo will sell its OEM goods on Lazada. Tencent will formally start the game...

Ming Lu

Tencent (700 HK): 2Q24 Preview, Both Growth and Margin to Improve

We believe total revenue will grow by 9% YoY and game revenue began to rise in 2Q24. We believe the operating will continue to improve YoY in 2Q24....

Ming Lu

Tencent 4Q2023: Gaming Declines Yet Again, Margins Have Further Upside

​Tencent's 4Q revenue and OP grew YoY, but below consensus estimates. Games biz declined again after seeing growth in the last 3-quarters. New high...

Shifara Samsudeen, ACMA, CGMA

HK Connect SOUTHBOUND Flows (To 2 Aug 2024); ETFs Get Sold; Tencent, SOEs, Utilities Bought

SOUTHBOUND flows for HK Connect were to the net buy side for the 26th week in a row. SOEs in Energy, Telcos, and Utilities were strong. Banks too....

Travis Lundy

Tencent's 4Q revenue and OP grew YoY, but below consensus estimates. Games biz declined again after seeing growth in the last 3-quarters. New high...