Research: Tencent Results and Technical Update

Research: Tencent Results and Technical Update

Tencent out with results earlier today, seems to have been a missed on estimates.

I don’t believe there are currently any analyst sell ratings on the stock.

Will have to see how the share reacts tomorrow in HK.

Highlights:

– Revenues +32%
– Profit YoY +10%
– FY Operating Margins down from 38% to 31%
– Profit For Period: Q4 2017 v Q4 2018: -35%
– Profit For Period: Q3 2018 v Q4 2018: -40%
– 2018 Negative FCF of -RMB 45 billion vs Positive FCF of RMB 9.7 Billion

Technical Update: Weekly and Monthly Charts

Weekly Chart: price at triple trend line resistance with the 40-week in a sideways to downward trend. A sharp move lower would see the 40-week MA being tested at 332 while a failure of this would see the bottom of the channel (near 262, 200-week) act as a target.

Monthly Chart: Price has, since October 2018, been in a rising trend but below the long term channel going back to 2008.

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