External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Tencent announced 4Q24 financial results: total revenue grew by 11% YoY to RMB172.4bn, 3/2% ahead of our/Bloomberg consensus estimates, mainly due to better-than-expected growth of games &amp; marketing revenue.</li><li>During the period, non-IFRS net income was up by 30% YoY to RMB55.3bn, in line with our estimate; but net margin is slightly below our estimate, due to the increased R&amp;D expenses including staff costs and depreciation expenses related to AI investment.</li><li>Tencent plans to further step up AI investment in FY25 (RMB80- 100bn capex with more R&amp;D and marketing support to AI), which may drag the pace of margin expansion but unlock long-term growth opportunities of AI cloud, marketing and games businesses in our view. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Tencent announced 4Q24 financial results: total revenue grew by 11% YoY to RMB172.4bn, 3/2% ahead of our/Bloomberg consensus estimates, mainly due to better-than-expected growth of games &amp; marketing revenue.During the period, non-IFRS net income was up by 30% YoY to RMB55.3bn, in line with our estimate; but net margin is slightly below our estimate, due to the increased R&amp;D expenses including staff costs and depreciation expenses related to AI investment.Tencent plans to further step up AI investment in FY25 (RMB80- 100bn capex with more R&amp;D and marketing support to AI), which may drag the pace of margin expansion but unlock long-term growth opportunities of AI cloud, marketing and games businesses in our view. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Tencent (700 HK) - Stepping up AI Investment to Unleash Growth Opportunities

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>The growth rate of total revenue came back to two digits in 4Q24.</li>
<li>The growth rate of game revenue reached 20% YoY in 4Q24.</li>
<li>The gross margins of all business lines improved YoY in 4Q24.</li>
</ul>


The growth rate of total revenue came back to two digits in 4Q24.
The growth rate of game revenue reached 20% YoY in 4Q24.
The gross margins of all business lines improved YoY in 4Q24.


Tencent (700 HK): 4Q24, Revenue Growth Back to Two Digits

Equity Derivatives and Volatility Specialist, Clifton Derivatives

John Ley

Equity Derivatives and Volatility Specialist

Clifton Derivatives

Independent derivative and volatility research firm focusing on events/catalysts, earnings, relative value and cross asset volatility strategies.

Equity Derivatives

<ul>
<li>We take a detailed look at the implied earnings move priced into Tencent options compared to historical outcomes.</li>
<li>Post-Earnings price movements are analyzed to assess directional tendencies and magnitude based on earnings beats and misses.</li>
<li>An interesting post-earnings pattern emerges, with an options strategy outlined.</li>
</ul>


We take a detailed look at the implied earnings move priced into Tencent options compared to historical outcomes.
Post-Earnings price movements are analyzed to assess directional tendencies and magnitude based on earnings beats and misses.
An interesting post-earnings pattern emerges, with an options strategy outlined.


Tencent Earnings: Implied Vs Realized Price Changes and a Post Earnings Pattern

Derivatives and Quantitative Strategist

Gaudenz Schneider

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> / <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd-69366efb-cf6b-404d-a0e4-c6b9b2e128dc" target="_blank" data-smartkarma-citation="entities:17:1" rel="noopener">Tencent Holdings (ADR) (TCEHY US)</a> is set to announce Annual 2024 Results on 19 March 2025.</li>
<li>Options pricing implies a 4-6% move after earnings, significantly higher than historical patterns. From an options perspective, calendar spreads offer opportunities.</li>
<li>
<a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent</a>'s significant index weighting, around 8% in key Hong Kong indices, means its earnings has the potential to impact broader market performance.</li>
</ul>



Tencent (700 HK) / Tencent Holdings (ADR) (TCEHY US) is set to announce Annual 2024 Results on 19 March 2025.
Options pricing implies a 4-6% move after earnings, significantly higher than historical patterns. From an options perspective, calendar spreads offer opportunities.

Tencent's significant index weighting, around 8% in key Hong Kong indices, means its earnings has the potential to impact broader market performance.


Tencent (700 HK): Expected Move on Profit Announcement and Option Insights

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Gross SOUTHBOUND volumes dropped again somewhat but still high at HK$625bn. NET buying by SOUTHBOUND was HK$61bn which is HUGE.</li>
<li>The flows here are still striking. &gt;25% of the top 100 most liquid Southbound eligible stocks saw SOUTHBOUND buy more than 10% of weekly traded volume to March 12.</li>
<li>A summary of important China-related stock news as I saw it this week is included. </li>
</ul>


Gross SOUTHBOUND volumes dropped again somewhat but still high at HK$625bn. NET buying by SOUTHBOUND was HK$61bn which is HUGE.
The flows here are still striking. &gt;25% of the top 100 most liquid Southbound eligible stocks saw SOUTHBOUND buy more than 10% of weekly traded volume to March 12.
A summary of important China-related stock news as I saw it this week is included. 


HK Connect SOUTHBOUND Flows (To 14 Mar 2025); Big Volumes, Big Net; Tech and Banks Still Leading

China

Tencent Holdings Limited operates as an investment holding company. The Company, through its subsidiaries, provides Internet and mobile value-added services (VAS), online advertising, and e-commerce transactions. Tencent Holdings offers services to users worldwide.

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Tencent Holdings (ADR) (TCEHY US)

Tencent (700 HK) - Stepping up AI Investment to Unleash Growth Opportunities

We lift our FY25-26E total revenue forecast by 1%, and raise our SOTP-derived TP to HK$625.0 (previous: HK$525.0) given the rerating of several...

CMB International

Tencent (700 HK): 4Q24, Revenue Growth Back to Two Digits

The growth rate of total revenue came back to two digits in 4Q24. The growth rate of game revenue reached 20% YoY in 4Q24. The gross margins of all...

Ming Lu

Tencent Earnings: Implied Vs Realized Price Changes and a Post Earnings Pattern

Analysis of Tencent options shows implied earnings move compared to historical outcomes, revealing post-earnings patterns and a potential options...

John Ley

Tencent (700 HK): Expected Move on Profit Announcement and Option Insights

Tencent to announce Annual 2024 Results on 19 March 2025. Options pricing suggests a 4-6% move. Calendar spreads offer opportunities.

Gaudenz Schneider

HK Connect SOUTHBOUND Flows (To 14 Mar 2025); Big Volumes, Big Net; Tech and Banks Still Leading

SOUTHBOUND Connect volumes slow down in gross but record very high net. Net buying bias is still significant. Tech, and tech-ish consumer...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Tencent (700 HK) - Stepping up AI Investment to Unleash Growth Opportunities

We lift our FY25-26E total revenue forecast by 1%, and raise our SOTP-derived TP to HK$625.0 (previous: HK$525.0) given the rerating of several...

CMB International

Tencent (700 HK): 4Q24, Revenue Growth Back to Two Digits

The growth rate of total revenue came back to two digits in 4Q24. The growth rate of game revenue reached 20% YoY in 4Q24. The gross margins of all...

Ming Lu

Tencent Earnings: Implied Vs Realized Price Changes and a Post Earnings Pattern

​Analysis of Tencent options shows implied earnings move compared to historical outcomes, revealing post-earnings patterns and a potential options...

John Ley

Tencent (700 HK): Expected Move on Profit Announcement and Option Insights

​Tencent to announce Annual 2024 Results on 19 March 2025. Options pricing suggests a 4-6% move. Calendar spreads offer opportunities.

Gaudenz Schneider

HK Connect SOUTHBOUND Flows (To 14 Mar 2025); Big Volumes, Big Net; Tech and Banks Still Leading

SOUTHBOUND Connect volumes slow down in gross but record very high net. Net buying bias is still significant. Tech, and tech-ish consumer...

Travis Lundy

Analysis of Tencent options shows implied earnings move compared to historical outcomes, revealing post-earnings patterns and a potential options...

Tencent to announce Annual 2024 Results on 19 March 2025. Options pricing suggests a 4-6% move. Calendar spreads offer opportunities.