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
- 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
- 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
- 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.
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