Analysis Report | Can Tencent, Meituan, and Xiaopeng Motors rise by nearly 50%? Netflix's target price has been lowered!

Bank of America: Maintains "Buy" rating on Tencent, target price of HKD 450

If calculated based on the latest closing price of HKD 309.2, this price implies a 45.5% upside!

The bank pointed out that during the internet inspection trip to Shenzhen and Guangzhou, they visited Tencent's office. The bank quoted the management as saying that they have confidence in the recent performance. The progress of local game commercialization in the third quarter is better than that of the second quarter. The new game "MapleStory: Legend of Maple" launched in August has the sixth highest revenue-generating ability among iOS games in the market. The self-developed game "Hyper Legend," which will be launched on the 21st of this month, has recorded over 10 million pre-registrations. "Extreme Speed" is awaiting final approval.

Overseas game growth continues to outpace local games. The report also pointed out that Tencent's advertising business will experience healthy growth in the second half of the year, with increased attractiveness in e-commerce advertising. This is because Tencent has improved advertising performance and established a merchant brand database and video inventory. Tencent and Alibaba have also strengthened their advertising cooperation.

The bank still believes that the advertising business will benefit from intensified competition among e-commerce platforms and merchants seeking to increase traffic. In this trend, Tencent is the main beneficiary.

Nomura: Reiterates "Buy" rating on Meituan, target price of HKD 175

The bank expects Meituan's third-quarter food delivery revenue to increase by 18.5% YoY in 2023. Due to favorable labor costs, the bank predicts that the operating profit per food delivery order will be 1.1 yuan in the third quarter and 1.2 yuan in the fourth quarter. If the sales growth exceeds expectations, there is potential for an increase in operating profit per food delivery order.

The bank believes that "Group Meal" is popular among price-sensitive users as it consolidates multiple orders for a single delivery. "Group Meal" accounts for nearly 10% of the total transaction volume. Once the daily order volume reaches 100 million (currently 60 million), this proportion could reach 20%.

The bank also believes that Meituan's operating profit margin for physical stores, restaurants, and travel in the third quarter of this year is expected to reach 30-35%. If the momentum of Gross Transaction Value (GTV) in this quarter is stronger than expected, there is also room for upward potential. The visibility of the operating profit margin for physical stores in the fourth quarter of this year is still low and depends on whether Douyin will launch other aggressive marketing activities.

Morgan Stanley: Gives XPeng Motors a "Hold" rating, target price of USD 25.4

If calculated based on the latest closing price of USD 17.49, this price implies a 45% upside!

The bank stated that the group recently released the 2024 version of the G9, with adjusted product and marketing strategies. Morgan Stanley believes that the G9 is competitively priced, starting at CNY 263,900, while the old entry-level version is priced at CNY 309,900, which is at the lower end of the market expectation of CNY 260,000 to CNY 280,000. The overall pricing of the new G9 series is about 15-19% lower than the previous version.

Despite the launch of an anti-subsidy investigation by the European Union, XPeng plans to continue expanding in Europe. After its debut at the German Auto Show earlier this month, the group plans to start delivering the G9 in Norway, Denmark, the Netherlands, and Sweden from October this year, and then enter Germany in 2024.

Evercore: Maintains "Outperform" rating for Netflix, lowers target price by 9% to $500

Bernstein: Initiates "Underperform" rating for ARM, target price $46

The firm stated that it may not benefit from the AI boom as much as some investors expect.

The firm believes that while there are expectations for Arm to benefit from the growth of artificial intelligence, which could lead to a premium in stock price, it is still too early to declare Arm as the winner in the AI field. With the maturity of the mobile terminal market, expectations for revenue growth may be overly optimistic.