New Street: Tencent 2Q21 Results - Gradual Buildup of Headcount Related Expenses Ahead
What's new: Tencent’s reported 2Q21 top-line results came in largely in-line with consensus expectations. There could be a gradual buildup of headcount related expenses over the next few quarters as the company continues to invest in areas such as business services, high production value games, and short for videos. We lower our PT from HKD700 to HKD600 on multiples contraction related to uncertainty in the regulatory environment. Our PT of HKD600 implies a 29.3x FY22E P/E. We maintain our BUY rating.Analysts:
Jin Yoon
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