Optimism in the Markets Ahead of Tencent’s Quarterly Reports
On Chinese trading platforms, stock prices rose significantly on Wednesday, indicating a positive market environment ahead of the quarterly reports from Tencent and Alibaba.
Tencent Before Quarterly Reports
- Tencent will release its results for the first quarter of 2025 on Wednesday afternoon (May 14, 2025), ending on March 31.
- Analysts expect a significant increase in earnings: The adjusted earnings per share (EPS) is projected to be around 6.40 CNY, compared to 4.87 HKD in the same quarter last year.
- Experts forecast a revenue increase from approximately 173.53 billion HKD to about 175.64 billion CNY.
- Other metrics like EBITDA and EBIT are also expected to rise; for example, an EBITDA of about 9.76 billion dollars is anticipated, up from 9.06 billion dollars the previous year, along with an improvement in the gross margin from about 52.6% to just under 54%.
- The adjusted net profit is expected to rise from around 7 billion dollars to over 8 billion dollars, according to analyst estimates.
- Historically, after the release of the figures, there is an average stock movement around the announcement of up to +3.75% immediately thereafter and even up to +10% within a month; however, reactions can also be negative.
- For the coming years, Tencent plans significant investments in Artificial Intelligence (AI), with around 12.5 billion US dollars allocated for the year.
These positive expectations are currently reflected in the rising stock prices on the Chinese exchanges and indicate that investors are optimistic about Tencent’s growth potential despite a challenging global environment.
Alibaba
The search results contain no specific details regarding current expectations or figures for Alibaba. However, it can be assumed that a positive sentiment also prevails here ahead of the quarterly report announcements.
In summary, the strong price gains on Chinese trading platforms on Wednesday signal an overall positive market environment ahead of the important quarterly reports, particularly from Tencent—a leading tech giant in China—whose figures are expected to show strong profits and revenue increases.