Moving beyond entertainment into the next US$5bn revenue op

Although Tencent has executed successfully in the online interactive
entertainment businesses, we believe that as China’s Internet industry
matures and user time is increasingly fragmented across a wider range of
non-entertainment activities, Tencent’s strategy over the next 3-5 years
will need to move aggressively beyond games to sustain its growth. While
we have a favorable view on the potential for Tencent to leverage a
massive user base, its multiple social platforms integration and long-term
upside from its recent open platform strategy, we believe such a transition
could be disruptive and investments required to execute beyond games
could restrict stock performance over the next 6-12 months.