Stock Idea Thinking of investing in Tencent? Now may be th | FSMOne SG - Research Highlights

Stock Idea

Thinking of investing in Tencent? Now may be the right time.

——————————————————

• Tencent’s shares have slid by nearly -40% from its peak this year as the Chinese government continues to tighten regulations on the tech sector.

• Limits on in game spending and game time for minors are unlikely to have a significant impact as minors only account for less than 3% of Tencent’s games revenue.

• A vast portfolio of existing games (e.g. Honor of Kings, PUBG), along with growing international revenue, can help to cushion any negative impact stemming from the slower game approvals.

• Tencent’s advertising and fintech businesses remain resilient, with plenty of room for growth, supported by megatrends such as rising smartphone adoption rates and e-commerce.

• Based on the sum-of-the-parts methodology, our target price for Tencent is HKD 747, which translates to an upside potential of close to 60%.

: Read the full article here
: Tencent (HKEX:700)