• Tencent‘s 1Q net income was above estimates, at 41.89 billion yuan instead of the predicted 34.5 billion yuan.
• The operating profit also exceeded expectations, with the company achieving 52.56 billion yuan compared with an estimate of 45.28 billion yuan.
• Tencent also surpassed predicted numbers for adjusted net income (50.27 billion yuan vs. 43 billion yuan) and revenue (159.50 billion yuan vs. 158.81 billion yuan).
• However, the company fell short on net other gains, realising only 1.03 billion yuan against an estimate of 1.72 billion yuan.
• Tencent‘s performance resulted in a major vote of confidence from the market, with 69 buys, 1 hold and no sells.
Tencent on Smartkarma
Analyst coverage of Tencent on Smartkarma reveals positive sentiments from various independent analysts. Charlotte van Tiddens, CFA, in her report “Tencent Q1 FY24 Results Due, a Look into What Is Priced,” discusses Tencent‘s upcoming Q1 FY24 results and compares its performance to the HSTECH index. Meanwhile, Ming Lu‘s report “Tencent (700 HK): 1Q24 Preview” anticipates a 41% growth in EPS with a potential 9% upside by the end of 2024.
Travis Lundy‘s insights on “HK Connect SOUTHBOUND Flows” provide perspective on market trends and foreign-led buying actions in Tencent. Additionally, Joe Jasper‘s report “Upgrading Emerging Markets to Market Weight” suggests positive outlooks for emerging markets and commodities, including implications for Tencent. Ke Yan, CFA, FRM, highlights game approval trends in “Tencent/Netease: Game Approval Rotate to Netease in April,” emphasizing Netease’s recent approval success over Tencent.
A look at Tencent Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
The long-term outlook for Tencent Holdings Limited, as per Smartkarma Smart Scores, showcases a promising trajectory. With a solid Momentum score of 5, Tencent demonstrates a strong trend that is likely to continue in the future. This suggests that Tencent is experiencing solid growth and market acceptance, positioning it positively for long-term success.
Additionally, Tencent‘s Growth and Resilience scores of 3 indicate a company that is steadily expanding its operations and has the ability to withstand challenges. While the Value and Dividend scores are at 2, showing potential for improvement, Tencent‘s overall performance across the other factors makes it an attractive option for investors seeking long-term stability and growth.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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