Citi released a report indicating that last Saturday (4th) it participated in Tencent's (00700.HK) investor event in Macau, focusing on video content and intellectual property (IP) strategy, and gained a deeper understanding of its video content production strategy and CHINA LIT's (00772.HK) IP incubation/adaptation methods. Management reiterated the company's technological leadership in platform and content, and through persistent patience and execution, the company has achieved success in many sub-business areas over the past 10 to 15 years.

The firm believes that, although Tencent entered some fields later, its continued investment over the years has steadily advanced it towards a market-leading position. As the success rate of video content production continues to improve, it is estimated that this year Tencent Video will continue to focus on high-quality content while optimizing production quantity. Although still in the early stages, promoting Chinese-produced IP overseas is CHINA LIT's Global vision. The firm reiterated its "Buy" rating for Tencent and ranked it as a preferred stock and core Holdings, with a Target Price of 573 yuan.