McGonagall hair research report refers to$Tencent (00700.HK) $It is one of the main participants in promoting China's digital transformation. Over the past decade, Tencent has also been the world's largest online game developer and publisher by revenue, and has continued to consolidate its influence on enterprises. The bank expects Tencent's earnings growth to bottom out in 2022 (down 8 per cent from a year earlier) and pick up to 26 per cent in 2023.
The bank resumed tracking Tencent, giving it an "outperform" rating and a target price of HK $513, saying that its growth headwind was almost over and that a recovery in growth could push it upward. In addition, Tencent's Macquarie ESG score of 6.5 is among the top four Asian companies covered by the bank.
The bank says it is optimistic about its layout of strategic priority areas (international games, video accounts and SaaS/ cloud computing) with the synergy of the Wechat ecosystem: Tencent plans to allocate resources to international games and potential mergers and acquisitions, which will boost its international game revenue to 30 per cent of its total revenue by 2024. At the same time, Tencent is expected to gradually monetize his video account (VA) from the fourth quarter of 22 and achieve more than 40 billion yuan in advertising revenue (23% of total advertising revenue) by 2024. During the two years of incubation, the number of daily active users of Tencent's video account has exceeded 500m. In addition, the resumption of the release of game version numbers this year will also promote the growth of its domestic game and related advertising business in the fourth quarter of 22.