[ET Net News Agency, 23 July 2019] Nomura lowered its target price for Tencent Holdings
(00700) to HK$430 from HK$432 and maintained its "buy" rating.
The research house expects Tencent's 2Q revenue growth of 21% to CNY89.3bn, which is 5%
below the current consensus estimate of CNY93.7bn. It also expects non-GAAP EPS at CNY2.28
(+11%), 3% below the Street's CNY2.36. Advertising service likely remained a weak link,
further slowing to 19% from 25% in 1Q driven mainly by weakening media ads revenue (likely
down 4%), whereas social ads revenue likely fared better with 31% growth.
Aside from lingering macro impacts, Nomura expects Tencent's video ads service, which is
a big component of media ads, also suffered from tightening content regulation, which has
caused delays in the airing of some popular video content and consequently caused
disruption to the video ads business.
Nomura trimmed its revenue/EPS forecasts by 4%/6% and 4%/3% for FY2019/20. (KL)
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00700 TENCENT
Nominal 
332.400 +12.000 (+3.745%) Others
23/07/2019 13:46
[I-bank focus]Nomura cuts Tencent Holdings (00700) to HK$430
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