Big Bank Ratings | CMB International: Regulatory risks have not been eliminated, and the stock price of Tencent (0700. HK) is expected to be at a low level of about HK $402
格隆汇2021-08-17
Gelonghui August 17thTencent(0700. HK) will announce its interim results tomorrow. According to the CMB International Development and Research Report, it is estimated that the revenue/profit in the second quarter will increase by 18%/8% year-on-year, which is slightly lower than the market expectation by 2%/1%. Among them, value-added services/advertising/other revenue is expected to increase by 11%/21%/32% year-on-year. It is believed that the slowdown of game growth and the decline of profit margin have been fully expected by the market. In the short term, regulatory risks have weakened industry sentiment and may put pressure on stock prices. If P/E is predicted based on the past valuation low of 24 times, Tencent's stock price is expected to be at a low of about HK $402. The profit forecast for 21-23 years is lowered by 8%-11% to reflect the increase in investment and the possible increase in tax rate. The target price is lowered to HK $640, and the "buy" rating is maintained. It is still optimistic about its long-term growth prospects and profit visibility. Note: Tencent is now down more than 4% to HK $435.4, with a market value of HK $4.17 trillion.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
