reports
- Jin Yoon
BZ 4Q24 Results: Outlook Remains Intact
What’s new: BZ’s reported 4Q24 revs that were largely in-line with consensus and our expectations. Guidance implies sequential recovery in recruitment demand. Outlook including user growth and non-GAAP operating profit target for FY25 remains intact. We up our PT from USD20 to USD25 on improving demand environment. Our updated PT of USD25 implies 23.6x FY25E P/E. We maintain our BUY rating. Analysts: Jin Yoon
- Jin Yoon
- Jin Yoon
BZ 3Q24 Results: FY25 Outlook Remains Intact
What’s new: BZ’s reported 3Q24 revs that were largely in-line with consensus and our expectations. Guidance implies that online recruitment demand remains challenging in 4Q24. While upside to FY25 revs would be dependent on incremental policy rollouts, margin would further improve as BZ remains disciplined in its spending. We maintain our PT at USD20. Analysts: Jin Yoon
- Jin Yoon
- Jin Yoon
BZ 2Q24 Results: Limited Visibility in the 2H
What’s new: BZ’s reported 2Q24 revs that were largely in-line with consensus and our expectations. Guidance implies that online recruitment demand could be challenging in the 3Q and that visibility in the 2H remains limited. Non-GAAP operating profit outlook could remain intact despite slower-than-expected top-line growth. We lower our PT from USD25 to USD20 due to lowered near-term outlook. Our updated PT of USD20 implies a 19.8x FY25E P/E. We maintain our BUY rating. Analysts: Jin Yoon
- Jin Yoon
- Jin Yoon
BZ 1Q24 Results: Online Recruitment Recovery Remains on Track
What’s new: BZ’s 1Q24 results were above consensus and our expectations. Guidance implies that online recruitment demand could continue to see sequential growth in 2Q partly driven by recovery in KA. Margins could also improve YoY amid continued cost controls. We maintain our PT at USD25. Analysts: Jin Yoon
- Jin Yoon
- Jin Yoon
BZ 4Q23 Results: Recruitment Demand Could Remain Resilient in FY24
What’s new: BZ’s 4Q23 results were above consensus and our expectations. Online recruitment demand could continue to see sequential growth in 1Q partly driven by recovery in KA. Margins could also further improve YoY as the company would remain disciplined in its overall spending. We up our PT from USD17 to USD25 and upgrade from NEUTRAL to BUY rating on improving FY24 outlook. Our revised PT of USD25 implies a 31.1x FY24 P/E. Analysts: Jin Yoon
- Jin Yoon
Tencent: Key Metrics from Weixin Open Class Pro 2024
What’s New: Tencent held a closed-door Weixin Open Class Pro event this year. We highlight some of the key metrics shared from segments including video accounts and mini games. We also updated our online game revenue estimates for 4Q23. Analysts: Jin Yoon
- Jin Yoon
Tencent: Updates on Online Game Measures and Other Business Segments
What’s New: We maintain our 4Q23 estimates as overall business could remain largely intact. In this note, we discuss key updates including near-term outlook for segments including games, ads, and business services. Analysts: Jin Yoon
- Julia Pan Mengyao
- Ming San Soong
China Internet: Softening tone from regulatory authority on online gam...
On 25 Dec 23, NPPA issued the 11th batch of domestic Banhao with 105 approvals, higher than previous monthly batches’ average of 85. We see a softening tone from NPPA’s draft on online game policy restrictions on 23 Dec 23. However, the execution and impact of the new regulations are yet to be tracked. We are cautiously optimistic on the online game sector’s growth in 2024 with the changes in the regulatory environment. Maintain MARKET WEIGHT.
- Jin Yoon
BZ Initiating with NEUTRAL Rating at $17; Macro Concerns May Limit Ups...
What’s New: We are initiating on Kanzhun Ltd (BZ US) with a NEUTRAL rating at a PT of USD17, which implies 25.0x FY24E P/E. We remain constructive about BZ’s competitive business moat coupled with strong mindshare gains – especially among SMEs. However structural unemployment and underemployment could take time to recover which may limit potential upside in monetization and market share gains. Analysts: Jin Yoon
- Julia Pan Mengyao
- Ming San Soong
China Internet: Strong pipeline in 2024; ample monetisation opportunit...
We expect resilient online games sector growth going into 2024, in view of a strong game grossing performance in 3Q23, solid game pipeline with multiple popular genres in 2024 as well as continuously favourable regulatory environment. We foresee ample monetisation opportunities from mini games and AIGC application. NetEase is our top pick given its strong position in the party games genre and margin improvement due to payment channel migration. Maintain MARKET WEIGHT.
- Heidi Mo Jinghui
- John Cheong Ming Chern
- Julia Pan Mengyao
- Jun Sian Tan
- Kong Ho Meng
- Ming San Soong
- Paula Ruth
- Roy Chen Chengzhi
- Tanaporn Visaruthaphong
Regional Morning Notes - Thursday, December 07, 2023
GREATER CHINA Sector Internet: Strong pipeline in 2024; ample monetisation opportunities from party games. Shipping And Ports: Near-term outlook still subdued; trade volume likely to see a moderate pick-up in 2024. Maintain MARKET WEIGHT. Top pick: CSP (1199 HK/BUY/Target: HK$6.42). INDONESIA Update XL Axiata (EXCL IJ/BUY/Rp2,140/Target: Rp2,500): Fixed broadband subscriber numbers might surge 385% from the migration of LINK’s customers. Maintain BUY. MALAYSIA Results Gamuda (GAM MK/BUY/RM4.41...
00144 CHINA MERCHANTS PORT HOLDINGS CO. LTD.
ORI1 ORIENT OVERSEAS (INTERNATIONAL) LIMITED
COSCO SHIPPING HOLDINGS CO. LTD. CLASS H
GAM GAMUDA BHD
DLUM DELEUM BERHAD
700 HK TENCENT 700 HK
1199 COSCO SHIPPING PORTS LIMITED
MPM MARCO POLO MARINE LTD
9999 HK NETEASE INC
EXCL XL AXIATA TBK PT
- Jin Yoon
Tencent 3Q23 Results: Upside in Margins Amid Shift to High Quality Rev...
What’s new: Tencent’s reported 3Q23 revs were largely in line, while margins were above consensus and our expectations. Margins could see further upside amid shift to high-quality revenue growth model, and continued cost controls. We maintain our PT at HKD450. Analysts: Jin Yoon
- Julia Pan Mengyao
- Ming San Soong
Tencent Holdings (700 HK): 3Q23: Earnings beat driven by meaningful ma...
Tencent’s 3Q23 results are in line with our expectations. Revenue grew 10.4% yoy to Rmb154.6b, in line with consensus estimates. Gross margin expanded 5.2ppt yoy to 49.5%, better than consensus forecasts. Non-GAAP operating profit surged 35.6% yoy, and non-GAAP OPM expanded 6.7ppt yoy to 35.9%, beating our estimates. Non-IFRS net profit increased 39.3% yoy, 12.4% above consensus forecasts, given a positive revenue mix shift. Maintain BUY with a slightly higher target price of HK$425.00.
- Bella Lu Yifei
- Damon Shen
- Jieqi Liu
- Julia Pan Mengyao
- Ken Lee
- Ming San Soong
- Terence Chiu
- Tham Mun Hon
Greater China Daily: Thursday, November 16, 2023
KEY HIGHLIGHTS Economics Economic Activity Stronger retail sales in Oct 23, but FAI stays weak. Initiate Coverage Longfor Group Holdings (960 HK/BUY/HK$13.04/Target: HK$17.68) Leading developer and TOD mall operator in China’s Tier 1 and 2 cities. Results JD.com (9618 HK/BUY/HK$105.90/Target: HK$186.00) 3Q23: Tempered top-line growth; 4Q23 outlook to be anchored by resilient 11.11 performance. Tencent Holdings (700 HK/BUY/HK$322.60/Target: HK$425.00) 3Q23: Earnings beat driven by meaningful ...
- Julia Pan Mengyao
- Ming San Soong
China Internet: 3Q23 results preview: Solid e-commerce ad growth to dr...
We expect e-commerce ads and overseas e-commerce expansion to be the main driving forces spurring stagnant growth in 3Q23 and beyond. In addition, we are optimistic about the better-the-expected growth in game gross profit and on-track OTA data on the back of strong seasonality. We are also looking out for meaningful progress in AIGC development in 3Q23 and better visibility in 4Q23. Maintain MARKET WEIGHT on the internet sector.
JD JD.COM INC. SPONSORED ADR CLASS A
K3SD BAIDU INC SPONSORED ADR CLASS A
A117ME ALIBABA GROUP HOLDING LTD. SPONSORED ADR
3690 MEITUAN DIANPING 3690 HK
700 HK TENCENT 700 HK
TCOM US TRIP.COM TCOM US
9988 ALIBABA (9988 HK)
9618 JD.COM INC
1024 KUAISHOU TECHNOLOGY
9888 BAIDU INC
PDD PINDUODUO PDD US
9999 HK NETEASE INC
780 TONGCHENG TRAVEL HOLDINGS LTD
9961 TRIP.COM GROUP LTD
- Julia Pan Mengyao
- Ming San Soong
China Internet: Solid domestic game grossing growth in summer; expect ...
China’s online games market is expected to deliver an encouraging momentum in 3Q23, as reflected by the resilient growth in mobile grossing amid continuous favourable industry development. We opine there are monetisation opportunities for mini-games and AIGC, which will become growth catalysts for the online games market. Maintain MARKET WEIGHT.
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