[ET Net News Agency, 16 October 2018] Daiwa Research lowered its target price for
Tencent Holdings (00700) to HK$375 from HK$400, and maintained its "buy" rating.
Tencent will unveil its 3Q results on 14 November. The research house is are positive on
its long-term growth potential, backed by its large user base and superior monetisation
capabilities from its traffic/social platforms, but Daiwa expects further share-price
volatility in 4Q as it sees Tencent's gaming business lacking visibility until the
resumption of game approvals.
Daiwa trimmed its online game revenue forecasts for 2018/19 by 7-16% and sees near-term
downside risks for consensus earnings. It cut its 2018-20 non-GAAP EPS forecasts by 4-10%
due to limited visibility on its mobile game revenue. (KL)