Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Equity Analyst with 15+ years of experience as a Buy Side analyst covering companies in the Emerging and Developed markets.
Fundamental and Quantitative analysis on companies in the Internet, Telecommunication, Media, Technology, IT Services, Healthcare, Pharmaceutical and other Industrial sectors.
Idea generation focussed on Quality stocks, trading below their intrinsic Value, with sound Corporate Governance.

Global Emerging Market Equities

EQD | Tencent (700 HK): A Long but Use Options to Mitigate Any Broader Market Risks

Tencent Nearing Our Bear Target to Reverse from Short to Long

NetEase, Tencent: Risk of Negative Games Revenue Surprises Skewed to Tencent, Rather than NetEase

Tencent/Netease: Increasing Pressure with Zero Approval in August Batch & Thoughts on Trading

Tencent: Excluded from 4th Batch of Game Approvals; Domestic Game Revenue to Drop Further

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

Independent, Fundamental Quantitative Research

Propitious Research

Fully independent, fundamental and quantitative equity research, focused on companies in the Telecommunication, Media, Technology, Internet and Healthcare sectors in the Global Emerging Markets. Idea generation focused on Quality stocks, trading below their intrinsic Value, with sound Corporate Governance.

Equity Bottom-Up

<ul>
<li>New title approvals halved during 2021, yet overall industry games revenue grew by 3.4%y/y. 1H22 new games approvals are down a further 82%y/y, yet games revenue is down 1.8%.</li>
<li>Tencent has lost revenue market share to the overall Chinese online game software market, most notably to NetEase, this year.</li>
<li>Tencent’s paying gamer participation rate has dropped to levels last seen during 2018.</li>
</ul>


New title approvals halved during 2021, yet overall industry games revenue grew by 3.4%y/y. 1H22 new games approvals are down a further 82%y/y, yet games revenue is down 1.8%.
Tencent has lost revenue market share to the overall Chinese online game software market, most notably to NetEase, this year.
Tencent’s paying gamer participation rate has dropped to levels last seen during 2018.


Tencent: Domestic Game Approvals Over-Hyped as a Revenue Growth Driver