New Street Research - TENCENT 700 HK (700 HK) New Street: Tencent 4Q21 Results - Lowering PT on Continuing Margin Pressures and Weaker Topline Outlook

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New Street Research

Jin Yoon

New Street: Tencent 4Q21 Results - Lowering PT on Continuing Margin Pressures and Weaker Topline Outlook

What's new: Tencent’s reported 4Q21 results were below consensus and our expectations. Ads and gaming rev could further decelerate into 1H amid tough comps, macro backdrops, and impact from regulations which could start to normalize in 2H22. Margins could be impacted by continued investments in video accounts, international games, and SaaS. We lower our PT to HKD500, which implies a 31.3x FY22E P/E. We maintain our BUY rating.

Analysts:
Jin Yoon

28/03/2022 1 EN

Underlying

TENCENT 700 HK

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Analysts

Jin Yoon

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New Street: Tencent 4Q21 Results - Lowering PT on Continuing Margin Pressures and Weaker Topline Outlook

Tencent: Key Metrics from Weixin Open Class Pro 2024

Tencent: Updates on Online Game Measures and Other Business Segments

China Internet: Softening tone from regulatory authority on online game industry.

SATS, Carr, and the Art of the No Deal…Yet

Supreme Court Upholds USF Framework but Reform Still Ahead

CMCSA quick hit: Comcast continues to make the right pricing moves

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