Daily BriefsTMT/Internet

Daily Brief TMT/Internet: Tencent Music, Bilibili Inc, KE Holdings Inc and more

In today’s briefing:

  • Tencent Music Entertainment(TME.US) 4Q22 Preview: Raise TP for Gradual but Slow Recovery
  • Bilibili(Bili.US) 4Q22 Preview: Raise TP for More Optimistic Outlook in 2023
  • KE Holdings(BEKE.US) Preview:C4Q22 Marked the Beginning of 2023 Recovery

Tencent Music Entertainment(TME.US) 4Q22 Preview: Raise TP for Gradual but Slow Recovery

By Shawn Yang

  • We estimate that TME’s 4Q22 topline/bottom line would be (2.5%)/3.8% vs cons., because of disturbance in its social entertainment and ads business.
  • We forecast net income would only slightly beat cons by 6.1%, due to likely expense rebound and no major improvement on main businesses.
  • Reiterate SELL rating but raise TP to US$ 6.7 to reflect margin beat and improvement of macro environment. Our TP implies 12.3X PE in 2023.

Bilibili(Bili.US) 4Q22 Preview: Raise TP for More Optimistic Outlook in 2023

By Shawn Yang

  • While BILI’s top line in 4Q22/2023 would be in line, we suggest that its bottom line in 4Q22/2023 would beat cons. by 6%/18% due to cost-savings and optimized monetization efficiency. 
  • BILI’s adjusted net loss would be significantly narrowed to (3.2)bn RMB in 2023, per our estimation. However, we still have concerns about some of BILI’s fundamentals.
  • Maintain SELL but raise TP to US$ 16.4, implying 1.8X PS in 2023.

KE Holdings(BEKE.US) Preview:C4Q22 Marked the Beginning of 2023 Recovery

By Shawn Yang

  • We expect BEKE C4Q22 revenue and non-GAAP NI to be 9% and 64% above consensus. The bottom line beat is a result of earning leverage;
  • We expect the market monthly EH/NH transaction volume to turn positive growth in C1H23, with resumed offline activities and continuing policy support as main drivers
  • We raise TP by US$1 to US$20: 1) dialling up GTV in 4Q22, 2) faster pace transaction recovery in 2023, and 3) rebase FX from 7.05 to 6.77 in valuation.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars