Big moves to watch | Is there a doubling space for MEITUAN-W and KUAISHOU-W? XPENG-W's target price has been significantly lowered!

JPMorgan: Upgrade Tencent to "Overweight" with a target price of HKD 440

If calculated at the latest closing price of HKD 316.2, this price implies a 39% upside!

After announcing its first-quarter results and meeting with its management, the bank is more optimistic about its growth prospects and expects profit growth to accelerate this year, mainly due to strong growth in game revenue, advertising revenue recovery driven by short video users, and sustained cost benefits.

The bank said that the group's first-quarter adjusted operating profit exceeded expectations, with its adjusted earnings per share growth rate accelerating from 19% in the fourth quarter of 2022 to 28% in the first quarter of this year, and is expected to further increase to 30% for the rest of this year. In the medium term, the bank believes that the group will benefit from market share growth in advertising, international games, financial technology, and business services.

Credit Suisse: Upgrade Kuaishou-W to "Outperform" with a target price of HKD 108

If calculated at the latest closing price of HKD 54.5, this price implies a 98% upside!

The bank believes that Kuaishou-W's e-commerce business maintains a rapid growth momentum, with 100 million monthly paying users (MPU) in the first quarter and a penetration rate of 15% to 16%, and MPU is the key to the growth of gross merchandise volume (GMV). In addition, the bank believes that KOLs and merchants complement each other, especially the former can help increase sales in the short term.

The report stated that Kuaishou-W's daily active users (DAU) maintained a steady momentum, and the bank expects it to achieve a year-on-year growth of 5% this year and increase to about 400 million households next year. In addition, external advertising business is expected to achieve positive year-on-year growth in the second quarter, and the main external advertising categories include internet services, media, games, and e-commerce. Through data insights and video content tagging, Kuaishou-W should be able to further improve the return on investment of external advertising.

Lyon: Maintain Buy rating on Meituan-W with a target price of HKD 235

If calculated at the latest closing price of HKD 116.4, this price implies a 102% upside!

The bank mentioned that the company's first-quarter performance exceeded expectations, with total revenue increasing by 26.7% year-on-year to RMB 58.6 billion; adjusted pre-tax profit reached RMB 4.4 billion, higher than the expected RMB 1.9 billion. In addition, benefiting from strong demand, new marketing activities, and tools such as live streaming and short videos, core local business revenue increased by 25.5% year-on-year to RMB 42.9 billion. The bank expects the group's core revenue growth rate to accelerate to about 35% year-on-year in the second quarter.

Lyon: Maintain Buy rating on Xiaopeng Motors-W with a target price lowered from HKD 55 to HKD 39, a 29% decrease.

Morgan Stanley: "Buy" rating for NetEase, target price of $120

"If calculated at the latest closing price of HK$31.35, this price means there is still a 24% upside!"

The company made a profit of RMB 4.03 billion during the period, a quarterly decrease of 21.5%, and a loss of RMB 2.34 billion. Xiaopeng Motors expects to deliver 21,000-22,000 vehicles in the next quarter, with revenue reaching RMB 4.5-4.7 billion. As the company prepares to expand its G6 production capacity, the bank expects its monthly delivery volume to perform well in the fourth quarter.

"If calculated at the latest closing price of $89.51, this price means there is still a 34% upside!"

The bank stated that NetEase will release at least five new games in the next two months, including "Justice Mobile" which will be launched at the end of next month and the international version of "Harry Potter" mobile game which will be launched in the summer. With the strong organic growth of the group and the support of "Egg Party", the bank expects the future growth rate to further increase.

The report pointed out that NetEase's international game revenue will increase in the long run, and the game business is expected to reach a P/E ratio of 18.5 times this year, while game publishers in the United States and Europe are at a level of about 15-30 times.