Jefferies Bullish on Tencent's Growth Prospects in APAC Internet Sector

Jefferies research report highlights Tencent as the top pick in the Asia-Pacific (APAC) internet sector due to its diversified business model and potential for gross profit margin expansion.

European investors' interest in the sustainability and earnings growth of the APAC internet sub-sector amid macroeconomic challenges and geopolitical tensions.

Key areas of focus include demand for travel and local services, upcoming new games, regulatory approvals, and the online shopping market landscape.

Preference for companies with stable market shares and higher quality growth potential drives Tencent's selection as the top pick by Jefferies in the APAC internet sector.