[ET Net News Agency, 16 August 2019] HSBC Global Research lowered its target price for
Tencent Holdings (00700) to HK$430 from HK$464 and maintained its "buy" rating.
The research house said Tencent's share price has corrected by 20% since mid-April as
trade tensions re-escalated and fundamentally on weak advertising due to macro challenges
and rising supply of short video inventories.
But HSBC remains confident that its unique mini program ecosystem is embedded with
unexplored monetisation opportunities and success validated by large brands (e.g. Uniqlo
saw better user conversion and retention ratio).
HSBC cut its FY2019-21 adjusted EBITDA by 1-4% on higher content costs and mix shift to
lower-margin segments. (KL)