HONG KONG (Reuters) – Shares of Tencent Holdings Ltd (0700.HK) spread out 7 % in Hong Kong on Thursday after it reported better-than-expected first-quarter effects.
Tencent posted a 61 % soar in web profit on a 48 % rise in earnings for the first 3 months of the yr, beating consensus estimates.
But Credit Suisse reduced its goal value for the inventory to HK$523 from HK$540 after the effects, as did Jefferies to HK$515 from HK$530.
Jefferies analysts wrote in an accompanying notice that Tencent’s gross profit margin was once upper than anticipated with its “strong mobile game rebound”, however added a structural trade combine exchange would possibly proceed to weigh at the company’s margins.
Jefferies revised up its 2018 earnings goal by way of 1 % and reduced the non-GAAP income forecast by way of four % to replicate the next earnings contribution from advert and fiscal services and products, they wrote.
Daiwa Securities raised its goal value for Tencent to HK$530 from HK$490 on what it stated was once “a stellar set of results”.
Tencent shares have fluctuated this yr after surging to a file top in January to quickly overtake Facebook Inc (FB.O) as the arena’s fifth-most precious corporate, and swung again on a promote down by way of its greatest shareholder and control’s caution on margin softness.
Between its January top value of HK$476.6 and a low this yr of HK$380 on May eight, Tencent misplaced $117 billion in marketplace worth.
Its shares have been up three.three % to HK$409 as of 0200GMT, giving Tencent a marketplace capitalization of $496 billion.
($1 = 7.8496 Hong Kong bucks)
Reporting by way of Sijia Jiang and Twinnie Siu; Editing by way of James Pomfret and Sunil Nair