Soochow Stock Forum

Soochow Securities' low P/E ratio is due to its poor earnings outlook. Shareholders accept this, anticipating no future earnings surprises. Without improvement, this will continue to hinder the share price.

EPS decline's possible impact on investor hesitance indicated. Three year loss overshadowed by recent TSR improvements, hinting at business progress. Note: 2 warning signs and 1 marked concern that could influence stock performance.

Due to the decline in advertising demand caused by the epidemic and the reduction in the frequency of use in the financial payment field caused by the blockade, Soochow Securities maintained Tencent's adjusted EPS forecast of 13.2/15.9/19.1 yuan in the past 2022-2024, and the adjusted EPS increased by 2.61%/20.73%/19.69% YOY from 2022-2024, respectively, corresponding to 19.5/16.2/13.5 times of PE (Hong Kong dollar / RMB =0.86).
The company has solid busine...

Soochow Securities: we expect Tencent to achieve a revenue of 133 billion yuan in Q2 2022, a YOY decrease of about 3.8%, and an adjusted net profit of 25 billion yuan, a YOY decrease of 26.6%.
The performance of the game supply and demand side was flat, and the revenue of social networks increased slightly YOY:
1) Tencent did not launch new games in Q2 2022, and the repeated epidemic in many parts of the...