3 6 Ke·2024-01-30 12:04Core Insights - In 2023, significant shifts occurred in the Chinese internet landscape, with Pinduoduo surpassing Alibaba in market value and ByteDance's revenue exceeding Tencent's in the first half of the year [1] - Tencent's leadership acknowledges the challenges posed by emerging competitors while expressing confidence in its ability to innovate and grow [1][3] Group 1: Tencent's Current Position - Tencent's CEO, Ma Huateng, highlighted the company's need to rejuvenate its business model amidst increasing competition from newer companies [1][3] - Despite challenges, Tencent has maintained stability without major leadership upheavals or business splits, focusing on steady growth [1][3] Group 2: Financial Performance and Stock Buybacks - Tencent's stock buyback actions reflect its confidence, with 2023 seeing a record high in Hong Kong stock buybacks, where Tencent accounted for 40% of the total, amounting to HKD 48.4 billion [1][3] - In 2024, Tencent continued its buyback strategy, leading with 13 repurchases totaling over HKD 9.8 billion, representing 43% of the total buyback amount [1][3] Group 3: Growth Areas and New Initiatives - Key profit-driving areas identified include WeChat's video accounts, financial services, and mini-games, with video accounts showing significant growth in advertising and e-commerce [3][11] - Video accounts achieved a GMV of over RMB 300 billion in 2023, tripling from the previous year, indicating a strong upward trend in live-streaming e-commerce [11][13] Group 4: Gaming Business Challenges - Tencent's gaming division has faced criticism for relying on existing successes without introducing innovative new products, leading to a perception of stagnation [18][19] - The company is exploring international markets for gaming, with overseas revenue exceeding USD 7 billion, indicating potential for growth outside of China [19] Group 5: Future Outlook - Tencent aims to enhance its advertising revenue through video accounts, targeting RMB 24.3 billion in 2024 and potentially exceeding RMB 50 billion by 2026 [13] - The company is committed to maintaining its core gaming business while adapting to market changes and exploring new opportunities for international expansion [19]