Chinese Internet giant Tencent (TCEHY) today was added as one of UOB Kay Hian's top picks for June.
"We forecast a 49% yoy growth in Tencent's advertising revenue in 2017, benefiting from WeChat being well positioned to capture advertising needs through Moment ads, outpacing the average growth of its Chinese Internet peers," the firm noted.
UOB also said that Tencent's mobile payment platform Tenpay, which exceeded 600 million transactions last December, is expected to outpace Alibaba's (BABA) - Get Alibaba Group Holding Ltd. Report Alipay in 2018 with a higher growth rate.
"We forecast a 123% yoy growth in other revenues (payment and cloud), driven by increasing withdrawal fees, customer conversion, and expanding offline payment scenarios through WeChat Mini Programmes," UOB wrote.
The firm, however, is particularity bullish on Tencent's prospects in its cloud business for years to come.
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