[Today's focus]

Tencent Holdings (00700.HK)'s first quarter revenue of 159.5 billion yuan, net profit surged 62% year-on-year

Tencent Holdings (00700.HK) announced that for the three months ended March 31, 2024, the company's revenue was RMB 159.501 billion, up 6% year on year; gross profit was RMB 83.87 billion, up 23% year on year, and gross margin increased to 53% from 45% in the same period last year; profit attributable to the company's equity holders was RMB 41,889 billion, up 62% year on year; and basic profit per share was RMB 4.479 billion.

By business segment, revenue from value-added services decreased 0.9% year over year to RMB 78.6 billion; revenue from online advertising business increased 26% year on year to RMB 26.5 billion; revenue from fintech and corporate services increased 7% year on year to RMB 52.3 billion.

In the first quarter of 2024, WeChat and WeChat had monthly activity of 1,359 million, an increase of 3%; QQ mobile terminals had monthly activity of 553 million, a year-on-year decrease of 7%; and the number of registered accounts for paid value-added services was 260 million, an increase of 12% over the previous year.

In the first quarter of 2024, our team adjustments in several leading games in the local and international markets saw initial results. Total game turnover grew, laying the foundation for game revenue to resume growth in the next few quarters. We continue to cultivate high-quality revenue sources, including WeChat video accounts and search ads, mini game platform service fees, and video account merchant technical service fees, which have driven our gross profit and operating profit growth to exceed revenue growth. Committed to returning surplus capital to shareholders, we are stepping up our repurchase efforts, implementing share repurchases of over HK$100 billion in 2024 as planned, increasing dividends, and committed to continuing to invest in AI technology, enhance platforms and produce high-value content.

[Important matters]

Junzhi Group (01300.HK): Pre-winning the bid for China Mobile's 2023 to 2025 (biennial) centralized procurement (second batch) project for telecommunication power cable products

Shangao New Energy (01250.HK) plans to establish a joint venture to operate power generation, distribution and power supply businesses

[Financial results]

Ali Financial Report: Back to a healthy growth trajectory, Taotian GMV grew by double digits, and revenue from core public cloud products increased by double digits

Profit attributable to Samsonite (01910.HK) equity holders in the first quarter of $82.9 million increased 12.3% year-on-year

Caixing Toys (00869.HK) Yingxi: Expected revenue for the first quarter is approximately HK$221 million

[Operational data]

China Railway Construction (01186.HK) recently won bids for projects totaling 61.154 billion yuan

Greenland Hong Kong (00337.HK)'s first four-month contract sales were approximately $2,866 billion

[Pharmaceutical Innovation]

Shanghai Pharmaceutical (02607.HK): Sacubatripalvalsartan sodium tablets approved for production

Fu Hong Han Lin (02696.HK): Clinical trial application for HLX78 (lasoxifen tablets) approved by the State Drug Administration

[Acquisition and sale]

Shanghai Electric (02727.HK): Shanghai Electromechanical spent 236 million yuan to acquire 4.4415% of Shanghai Jiyou's shares

Shandong Guoxin (01697.HK): Guolian Securities plans to issue A-shares to acquire shares of Minsheng Securities held by the company

Lai Sun International (00191.HK) and Lai Sun Development (00488.HK): Proposed sale of 95% share capital of Singapore Guangcheng shares and related shareholder loans

Jiachuang Real Estate (02421.HK) plans to sell all shares in Dongguan Jiaxuntong Computer Products

[Issuance of additional shares]

Cat Poop Coffee Holdings (01869.HK) plans to sell up to 221 million shares at a discount of about 19.10% to raise about HK$30.94 million

Zhengwei Group (02147.HK) plans to sell a maximum of 160 million shares at a discount of approximately 4.83% to raise HK$20.72 million

Tailing Pharmaceuticals (01011.HK) proposes to change the trading unit for each lot of “10 in 1” shares to 10,000 shares

[Repurchase Cancellation]

HSBC Holdings (00005.HK) spent HK$217 million to buy back 3.2 million shares on May 13

Standard Chartered Group (02888.HK) spent £8.09 million to buy back 1.03 million shares on May 13

Pharmaceutical Biotech (02269.HK) spent HK$39.86 million to repurchase 2.75,000 shares on May 14

Hang Seng Bank (00011.HK) spent HK$32.415 million to repurchase 300,000 shares on May 14

MGM China (02282.HK) spent HK$22.97 million to buy back 1.5 million shares on May 14

Swire Group A (00019.HK) spent HK$24.565 million to buy back 354,500 shares on May 14

Yao Ming Kangde (02359.HK) spent 2005 million yuan to buy back 424,000 A shares on May 14

AIA (01299.HK) spent HK$15.79 million to repurchase 250,000 shares on May 14

Xiansheng Pharmaceutical (02096.HK) spent HK$8.935 million to buy back 1,565,000 shares on May 14

Xinxing Group (01170.HK) cancelled 3.22 million shares to repurchase shares on May 14

Beijing Holdings (00392.HK) cancelled 2.2 million shares to repurchase shares on May 14