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<Research>G Sachs Confident in TENCENT (00700.HK) Rev. Growth, Compounding Earnings Potential
Goldman Sachs participated in the Tencent Video investor event held in Macau last Saturday (4th) and met with James Mitchell, Chief Strategy Officer of TENCENT (00700.HK), Sun Zhon...
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<Research>G Sachs Confident in TENCENT (00700.HK) Rev. Growth, Compounding Earnings Potential
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Goldman Sachs participated in the Tencent Video investor event held in Macau last Saturday (4th) and met with James Mitchell, Chief Strategy Officer of TENCENT (00700.HK)  +12.200 (+2.557%)    Short selling $593.72M; Ratio 8.166%   , Sun Zhonghuai, CEO of Tencent Video and Hou Xiaonan, CEO of CHINA LIT (00772.HK)  +0.300 (+1.113%)    Short selling $10.03M; Ratio 11.242%   . Goldman Sachs released a research report saying.

In particular, the broker noted that TENCENT demonstrated consistent track record of surpassing its competitors and platform leadership over the years, supported by patience, balanced execution and transformation mindsets, becoming the leader of various internet domains, including Tencent Video, Tencent Pay and Tencent Games.

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Goldman Sachs was confident in TENCENT's revenue growth and compounding earnings potential, and was optimistic that its unique WeChat ecosystem and global game/ content assets offer multiple monetization opportunities, including WeChat Channel, e-commerce, Weixin search, wealth management and enterprise software, which will enable the company to achieve compounding earnings growth in a volatile macro cycle.

Goldman Sachs believed that TENCENT's current price is equivalent to a projected PE ratio of 15x by 2025 and has a stable shareholder return policy. Therefore, the broker kept rating at Buy for TENCENT (Conviction List Buy), with a target price of $542.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-04-30 16:25.)

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