Updated: Aug 1, 2021
Tencent (HK:700), a HK-listed, China tech giant needs no introduction.
Management continues to execute well, through its suite of services and products, to drive users’ engagement into its ecosystem. Please refer to the attached comprehensive report by Everbright Securities, which has a Buy recommendation with 12-month target price of HK$845.
The chart on the left is showing a Quarterly chart of Tencent so we can see the tremendous growth it’s been in since 2006, with no sign of plateauing just yet as its revenue grew by 27.8% in 2020. Yet, at its current price, Tencent’s valuation is looking attractive its P/E, P/B (px to book) and P/S (px to sales) are hovering close to all-time low levels.
Short-term wise, Tencent is trading near the support of the up trendline (purple) with KST crossing over upward. Since the start of 2020, KST bullish crossover had been a pretty good indications of a momentum up-move to come. Short-term traders can watch out for the support of $500 and resistance of $780 to set their trading strategies accordingly.
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This is an opinion piece. Please always do your own due diligence on the company's fundamentals & assess if the Fundamental / Technical analysis opinions are applicable to your trading/investing needs.
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