LB Select
2023.11.24 08:46
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Analysis Report | Price target for Kuaishou raised! Tencent's long-term value is highly regarded

Morgan Stanley stated that Kuaishou outperformed the industry by 6% in the past month. The company's strong performance in the third quarter highlighted its ability to achieve growth in all businesses, even in the face of economic challenges. The continuous improvement in profit margins also demonstrated the management's operational capabilities. It is expected that upward revisions in profit forecasts for the coming quarters will drive the stock price higher.

Morgan Stanley: Maintains "Overweight" rating on Kuaishou, raises target price by 6% to HKD 95

If calculated based on the latest closing price of HKD 59.25, this price implies a 60% upside!

The bank stated that Kuaishou outperformed the industry by 6% in the past month, and the strong performance in the third quarter highlighted the company's ability to achieve growth in all businesses even in challenging economic conditions. The continuous improvement in profit margins also demonstrates the management's operational capabilities.

At the same time, the bank raised its adjusted earnings forecast for Kuaishou for 2023-2024 by 16% and 11% respectively, to RMB 1.98 and RMB 3.59. It is expected that the upward revision of earnings forecasts for the next few quarters, driven by continuous revenue growth and management's emphasis on improving profitability, will push up the stock price.

CITIC Securities: Maintains "Buy" rating on Tencent, firmly optimistic about the company's long-term value

The bank expects revenue of RMB 607.3 billion, RMB 673.8 billion, and RMB 742.4 billion for 2023-2025, and net profit attributable to shareholders of RMB 147.5 billion, RMB 163.7 billion, and RMB 192.9 billion, respectively. The company's video ecosystem continues to improve, and the stickiness of creators and users continues to strengthen. The commercialization and monetization capabilities are expected to further enhance. In addition, the company has a rich game reserve, rapid development of mini-games, and the value-added services are also expected to achieve sustained growth. Therefore, the bank is firmly optimistic about Tencent's long-term value.

CICC: Maintains "Buy" rating on Futu, target price of USD 70

If calculated based on the latest closing price of USD 59.38, this price implies an 18% upside!

The bank stated that Futu's non-GAAP net profit for the third quarter increased by 43.7% YoY and slightly decreased by 3% QoQ, which is in line with expectations. The number of new customers exceeded expectations. In the third quarter, there were 65,000 new deposit customers, and a total of 165,000 in the first three quarters, exceeding the full-year guidance of 150,000 for 2023. In September, the company entered the Canadian and Japanese markets, and the bank expects the customer growth momentum to be promising through enriching product supply and optimizing customer experience.

The wealth management transformation is steadily progressing. The bank expects that due to structural factors affecting US inflation, high interest rate levels may persist for a longer period of time. If the interest rate cut process exceeds expectations, it is expected to enhance investor risk appetite, increase stock trading activity, and drive growth in trading commissions and financing demand, offsetting the decline in interest income from idle funds.

Interest income for the third quarter performed better than expected, and the bank raised its profit forecast for the company. It is expected that the fourth-quarter profit will remain stable on a QoQ basis, with a YoY increase of 50% for the full year.