Tencent Rebounds on the Robust 3Q Result

Tencent (700.HK): Rebound on the Robust 3Q Result

Tencent (700), a Chinese tech giant, announced that 3Q adjusted net income rose 32% on year to 32.30 billion yuan and operating profit jumped 70% to 43.95 billion yuan on revenue of 125.45 billion yuan, up 29%.

Goldman Sachs lifted the company's target prices from HK$678 to HK$705 and said the giant saw robust operating trends in the quarter, where mobile game revenues of RMB39.2 billion (+61% YoY) topped the broker's estimate of 46%. This was driven by contributions from Honor of Kings and Peacekeeper Elite.

From a technical point view, the stock posted a rebound after overlapping the previous consolidation zone. In fact, the stock prices remain supported by a rising trend line. The relative strength index is also supported by a bullish trend line.

Bullish readers could set the support level at HK$540, while resistance level would be located at HK$633 and HK$690.

Source: Gain Capital, TradingView

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