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 Holdings Ltd (700 HK) - Bullish Multi-Month Outlook - Target 450+ (+20-25%)

XPeng Inc (9868 HK) - Bullish Technical Triggers Confirm MT Uptrend - Target 25-30% Upswing

PetroChina Co Ltd (857 HK) - Price and Momentum Breakouts in March Confirm 10-15% Upside

Tencent (700 HK): 4Q22, Stop Decreasing WeChat Ad Recovered Earlier

Tencent  (700 HK) – Steady ship and aim for sustainable growth

Tencent: Gradual Recovery in Earnings; Domestic Gaming to Resume Growth

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>Tencent reported 4Q22 top line/ bottom line of 0.3%/(3.7%) vs cons. Online ads is stronger, while gaming and G&amp;A slightly missed our est. </li>
<li>We expect that ads will be the main driver, thanks to video accounts. Gaming will have better performance after more approved game codes.</li>
<li>We raise 2023 ads growth from 12% YoY to 15% YoY. Raise TP to HK$ 433. Maintain Tencent as one of the top picks in China Internet</li>
</ul>


Tencent reported 4Q22 top line/ bottom line of 0.3%/(3.7%) vs cons. Online ads is stronger, while gaming and G&amp;A slightly missed our est. 
We expect that ads will be the main driver, thanks to video accounts. Gaming will have better performance after more approved game codes.
We raise 2023 ads growth from 12% YoY to 15% YoY. Raise TP to HK$ 433. Maintain Tencent as one of the top picks in China Internet


[Tencent (700 HK) Target Price Change]: Recovery Aided by Strong Advertising & In Line Game