Tencent Outlook: Positive Catalysts and Strategic Analysis by CITIC Securities

$Prosus N.V. Sponsored ADR(PROSY.US)$ , a $NASPERS(NAPRF.US)$ subsidiary, will likely reduce its Tencent stake by about $11.6 billion in 1Q24, easing pressure on Tencent. CITIC Securities predicts Prosus will trim Tencent shares by around $200 million daily in 2024, with Tencent's annual buyback budget rising to $100 billion.

The continued decrease in the major shareholder's holdings, coupled with Tencent's increased buyback, should soothe market concerns. Tencent's 2024 dividend was $3.4 per share, with plans to double the buyback to over $100 billion.

CITIC Securities is bullish on Tencent's core businesses, anticipating increased competitiveness. Diversified growth in games, Video Accounts, fintech, and enterprise services is seen as key drivers. The firm maintains its Buy rating, targeting $398.