Macquarie: maintain Tencent's "outperformance" rating target price of HK $515

$Macquarie Global Infrastructure Total Return Fund Inc.(MGU.US)$ released a research report saying that Tencent is the first choice of China mainland Internet industry, and its profit forecast remains unchanged, with a target price of HK $515. It believes that the successful realization of the Video Channel, together with the recovery of games and online advertising, will accelerate the profit growth in the first half of next year.

The report said that the company's Video Channel is a leading short video platform in China, and it is believed that it is expected to become a major revenue contributor and support the recovery of profits. The bank believes that Tencent's Video Channel has strong synergy with other ecosystems, providing more interactive elements and omni-channel solutions among users, content creators and merchants, especially connecting with key assets of WeChat, such as small programs, payments, official accounts and instant messages, and providing diversified content.