According to Futu News on January 26, a research report released by UBS said$Tencent (00700.HK) $This week's Wechat meeting focused on Wechat's recent progress and strategy, benefiting from strong user engagement. The bank noted several positive factors for future realization, including 1.1 billion daily active users on Wechat and 780 million on moments, driving ecosystem growth. The number of Mini Program increased by 75% year-on-year, while WeCom increased by 400% year-on-year, and related user transactions increased. Last year's GMV doubled year on year to 1.6 trillion yuan.

According to the bank's analysis, most of the GMV comes from e-commerce and local services. The company continues to open up Wechat's ecosystem, links with short film products, and opens up film dynamics and external search functions. It is believed that there will be long-term cash opportunities for advertising, payment, subscription and reward, but the related factors are not reflected in the stock price. "Buy" rating, target price of HK $830.

UBS pointed out that short video has always been one of the strategic focuses of Wechat, and the company has successfully narrowed the gap with byte jumps and Kuaishou Technology users, believing that there is great potential in dynamic. It is estimated that Wechat can take advantage of video traffic to turn to other channels, including Mini Program, games and search, and further enhance user participation and cash, while video itself is also a better advertising carrier. In addition, management also pointed out that it plans to include live streaming in future Wechat updates, which means that the application will be further "videalized."

Mini Program had 400m daily active users last year, while the average Mini Program and GMV per household rose 25 per cent and 67 per cent respectively. Mini Program's liquidity also improved last year, with advertising revenue paid to non-game developers growing by 25 per cent year-on-year and more than 100 per cent. Last year, the number of Mini Program's monthly active users exceeded 500m for the first time, increasing the length of use and the number of games by 50 per cent and 20 per cent respectively, while overall Mini Game revenue rose 20 per cent year-on-year.

Tencent's share price fell 5.41% to HK $725 as of press time.