Analyst Note
| Dan Baker |We are increasing wide-moat Tencent’s fair value estimate by 10% to HKD 658 (USD 84.40) per share from HKD 600 (USD 77) per share, as we lifted our revenue estimate for the gaming businesses, increased the market valuation of investments and adjusted CNY/HKD exchange rate. The third-quarter result was largely positive in our view and taking into account the likely limited effect of the antitrust rules on Tencent, we think the shares are undervalued.