[ET Net News Agency, 23 October 2020] Huatai Research lifted its target price for
Tencent Holdings (00700) to HK$676 from HK$506 and maintained its "buy" rating.
The research house said Tencent's three growth engines look well-positioned to thrive in
the evolving internet industry. It thinks Tencent's (1) leading position remains solid in
the gaming and online advertising industries; (2) ecosystem will continue to cultivate
greater monetization opportunities, via mini-programs, e-commerce and search function,
among others; and (3) fintech and enterprise business will gather momentum and generate
value-added service revenue.
Huatai raised its 2020/2021 non-IFRS net profit forecasts by 9.5%/8.8% and forecast a
2020-2022 non-IFRS net profit CAGR of 25.9%. (KL)