Morgan Stanley released a research report stating that it reaffirmed the “gain” rating of Tencent Holdings (00700), continued to be listed as the preferred stock, and gave a target price of HK$570.
WeChat Store, a WeChat public e-commerce platform owned by Tencent Holdings, launched a grayscale test for the “gift delivery” function, which allows users to buy products under RMB 0.01 million as gifts and directly give them to WeChat friends. The gift function is similar to the WeChat Red Envelope development strategy, which is to use the WeChat ecosystem to build a unified and trustworthy e-commerce platform for users and provide indexed and standardized products.
Damo is expected to attract more merchants to join WeChat stores after the full launch of the new feature, which will bring upward room for e-commerce related transactions and advertising revenue in the long run. On the other hand, considering that competition in the market is already quite intense, Damo believes that Tencent is increasingly focusing on developing the small store business, which may cause the e-commerce industry to worry.
