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

Tencent/SEA/Unity/Krafton: More Shooting Games Are Emerging, a Summary of Our Recent Channel Checks

Tencent/700.HK: Pros and Cons of Wechat Video Accounts, a Summary of On-The-Ground Discussions

Tencent Announced Game Pipeline in Annual Conference "Spark 2023", and Our Estimations

[Tencent (700 HK, BUY, TP HK$433) Earnings Preview]: Still a BUY, but Not Our Top Pick

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>Tencent's latest financial results are in line with expectations, with revenue and non-IFRS profit of 2.5%/(2.1%) vs cons. While we anticipate weak growth in the gaming sector,</li>
<li>We suggest that advertising presents several catalysts for Tencent, including the recovery of Ecommerce and gaming, WeChat Video Account's growth, and inter-connections with Baba and Mihoyo. </li>
<li>We maintain a BUY rating with an unchanged target price of HK$433, implying 34X PE in 2023.</li>
</ul>


Tencent's latest financial results are in line with expectations, with revenue and non-IFRS profit of 2.5%/(2.1%) vs cons. While we anticipate weak growth in the gaming sector,
We suggest that advertising presents several catalysts for Tencent, including the recovery of Ecommerce and gaming, WeChat Video Account's growth, and inter-connections with Baba and Mihoyo. 
We maintain a BUY rating with an unchanged target price of HK$433, implying 34X PE in 2023.


[Tencent (700 HK, BUY, TP HK$433) Earnings Review]: Ads Growth Will Accelerate, Maintain BUY