Chief Executive Officer, Emmer Capital Partners Limited

Manishi Raychaudhuri

Chief Executive Officer

Emmer Capital Partners Limited

Emmer Capital Partners is an Asia Pacific focused financial advisory firm engaging in strategic financial asset allocation advice, bespoke thematic research and advising early-stage companies and connecting them to investors. Emmer Capital provides macro-economic and multi-asset investment strategy inputs to institutions, family offices, private wealth managers, private equity, and corporate boards directly and through independent research platforms. Emmer Capital also advises a wide range of startup companies on fund raising and business strategy. Emmer Capital's active engagement with the print and electronic media reaches a broad spectrum of investors across the globe.

Cross Asset Strategy

<ul>
<li>As the earnings season draws to a close, we look at Asian markets'/sectors' EPS estimate progression during the reporting season and earlier. Specifically, we search for upward or downward inflections.</li>
<li>Korea and Taiwan had the strongest EPS upgrades during this reporting season, despite the trade uncertainties. Philippines, Indonesia, Malaysia also had decent upgrades. HK/China and India continue to be downgraded.</li>
<li>Korean and Taiwanese technology, Korean industrials, HK Technology Services had strong upgrades. So did Singapore and Philippines financials, and Thailand Communications - the latter two with a long upgrade history.</li>
</ul>


As the earnings season draws to a close, we look at Asian markets'/sectors' EPS estimate progression during the reporting season and earlier. Specifically, we search for upward or downward inflections.
Korea and Taiwan had the strongest EPS upgrades during this reporting season, despite the trade uncertainties. Philippines, Indonesia, Malaysia also had decent upgrades. HK/China and India continue to be downgraded.
Korean and Taiwanese technology, Korean industrials, HK Technology Services had strong upgrades. So did Singapore and Philippines financials, and Thailand Communications - the latter two with a long upgrade history.


Asian Equities: Taking Stock After the Result Season: Where Are EPS Estimates Rising and Falling?

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Equity Bottom-Up

<ul>
<li>China announced game approval for the May batch. The number of games approved remained at a higher level than 2023.</li>
<li>The pace of China's game approval appears to have accelerated to the same level as pre-tightening.</li>
<li>Of the companies that we are monitoring, none of them got approval for domestic games but a handful approvals of imported games save their day.</li>
</ul>


China announced game approval for the May batch. The number of games approved remained at a higher level than 2023.
The pace of China's game approval appears to have accelerated to the same level as pre-tightening.
Of the companies that we are monitoring, none of them got approval for domestic games but a handful approvals of imported games save their day.


Tencent/Netease: None Gets Approvals for Domestic Games

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

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

<ul>
<li>Tencent reported C1Q25 rev., IFRS op. profit, and IFRS net inc, in-line, (3.1%), (5.6%) vs. our est. and 3.8%, (2.3%), (4.9%) vs. cons. </li>
<li>As predicted, Tencent maintained a transitional game quarter well, going forward new game launches shall fill the pipeline while recovering consumption helping on advertising and fintech. </li>
<li>We raised our TP to HK$584 for better outlook and place Tencent back to the TOP BUY list. Our TP implies 21x PE.</li>
</ul>


Tencent reported C1Q25 rev., IFRS op. profit, and IFRS net inc, in-line, (3.1%), (5.6%) vs. our est. and 3.8%, (2.3%), (4.9%) vs. cons. 
As predicted, Tencent maintained a transitional game quarter well, going forward new game launches shall fill the pipeline while recovering consumption helping on advertising and fintech. 
We raised our TP to HK$584 for better outlook and place Tencent back to the TOP BUY list. Our TP implies 21x PE.


[Tencent (700 HK, BUY, TP HK$584) TP Change]: C1Q25 Review: Outperformance in Low Game Season

Quantitative Equity Analyst, DMA

Charlotte van Tiddens, CFA

Quantitative Equity Analyst

Technology-First Company

DMA is a technology-first company that provides an end-to-end SaaS solution to institutional investors. DMA enables regulated entities like asset managers, wealth managers, investment managers and financial advisors to connect their front and back office, break silos and reduce headcount.

Event-Driven

<ul><li>Tencent is due to release Q1 FY24 results today. The earnings call is scheduled for 14:00 SAST</li><li>In this note, we unpack what is priced and how Tencent has performed relative to constituents in the HSTECH index since our last update (29 April).</li><li>We also provide an update on how the discounts of Naspers and Prosus have traded.</li></ul>

Tencent is due to release Q1 FY24 results today. The earnings call is scheduled for 14:00 SASTIn this note, we unpack what is priced and how Tencent has performed relative to constituents in the HSTECH index since our last update (29 April).We also provide an update on how the discounts of Naspers and Prosus have traded.

Tencent Q1 FY24 Results Due, a Look into What Is Priced

Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

<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> reported 4Q results today. Both revenues and OP increased 7.1% and 42.0% YoY, however, both revenue and OP fell below consensus estimates.</li>
<li>The company also announced an increase to 2023 dividends and more than doublethe size of the company's share buyback in 2024 compared to 2023.</li>
<li>We expect Internet VAS to grow at single-digits in 2024, however, high-margin new products to help boost margins in 2024.</li>
</ul>



Tencent (700 HK) reported 4Q results today. Both revenues and OP increased 7.1% and 42.0% YoY, however, both revenue and OP fell below consensus estimates.
The company also announced an increase to 2023 dividends and more than doublethe size of the company's share buyback in 2024 compared to 2023.
We expect Internet VAS to grow at single-digits in 2024, however, high-margin new products to help boost margins in 2024.


Tencent 4Q2023: Gaming Declines Yet Again, Margins Have Further Upside

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)

Asian Equities: Taking Stock After the Result Season: Where Are EPS Estimates Rising and Falling?

Asian markets' EPS est show strong upgrades in Korea and Taiwan, while HK/CN & India continue to be downgraded. KR & TW Tech, HK Tech Services, SG...

Manishi Raychaudhuri

Tencent/Netease: None Gets Approvals for Domestic Games

We analyzed the game approval issued by NPPA for Chinese online game players for the month of May. Game approvals for large players are slow so far...

Ke Yan, CFA, FRM

[Tencent (700 HK, BUY, TP HK$584) TP Change]: C1Q25 Review: Outperformance in Low Game Season

Tencent's Q1 performance meets expectations, with new game launches and recovering consumption driving future growth. Analysts raise target price...

Blue Lotus Research Institute

Tencent Q1 FY24 Results Due, a Look into What Is Priced

Tencent is due to release Q1 FY24 results today. The earnings call is scheduled for 14:00 SAST. In this note, we unpack what is priced and how...

DMA

Tencent 4Q2023: Gaming Declines Yet Again, Margins Have Further Upside

Tencent's 4Q revenue and OP grew YoY, but below consensus estimates. Games biz declined again after seeing growth in the last 3-quarters. New high...

Shifara Samsudeen, FCMA, CGMA

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Asian Equities: Taking Stock After the Result Season: Where Are EPS Estimates Rising and Falling?

​Asian markets' EPS est show strong upgrades in Korea and Taiwan, while HK/CN & India continue to be downgraded. KR & TW Tech, HK Tech Services, SG...

Manishi Raychaudhuri

Tencent/Netease: None Gets Approvals for Domestic Games

We analyzed the game approval issued by NPPA for Chinese online game players for the month of May. Game approvals for large players are slow so far...

Ke Yan, CFA, FRM

[Tencent (700 HK, BUY, TP HK$584) TP Change]: C1Q25 Review: Outperformance in Low Game Season

​Tencent's Q1 performance meets expectations, with new game launches and recovering consumption driving future growth. Analysts raise target price...

Blue Lotus Research Institute

Tencent Q1 FY24 Results Due, a Look into What Is Priced

Tencent is due to release Q1 FY24 results today. The earnings call is scheduled for 14:00 SAST. In this note, we unpack what is priced and how...

DMA

Tencent 4Q2023: Gaming Declines Yet Again, Margins Have Further Upside

​Tencent's 4Q revenue and OP grew YoY, but below consensus estimates. Games biz declined again after seeing growth in the last 3-quarters. New high...

Shifara Samsudeen, FCMA, CGMA

Asian markets' EPS est show strong upgrades in Korea and Taiwan, while HK/CN & India continue to be downgraded. KR & TW Tech, HK Tech Services, SG...

Tencent's Q1 performance meets expectations, with new game launches and recovering consumption driving future growth. Analysts raise target price...

Tencent's 4Q revenue and OP grew YoY, but below consensus estimates. Games biz declined again after seeing growth in the last 3-quarters. New high...