[ET Net News Agency, 15 November 2018] Goldman Sachs said Tencent Holdings' (00700) 3Q
results were in-line with its expectation. The research house expects 4Q total revenues to
reach Rmb86.3bn, up 30% YoY.
Goldman fine-tuned its 2018-20 revenue forecasts by +0%/+1%/+1%, factoring in quicker
growth in online advertising and other revenues, which offset the observed weakness in
online gaming amid regulatory uncertainties.
It expects the company's strategic structure upgrade to embrace industrial internet
leading to accelerated growth in the cloud and payment businesses. Goldman's non-GAAP
diluted EPS forecasts were increased by +3%/+2%/+2% for 2018-20, as it expects a lower tax
rate to more than offset the decline in gross margin due to revenue mix change.
It reiterated its "buy" rating on the stock, with a target price unchanged at HK$397.
(KL)