Profit forecast and investment rating

Due to the decline in advertising demand caused by the epidemic and the reduction in the frequency of use in the financial payment field caused by the blockade, Soochow Securities maintained Tencent's adjusted EPS forecast of 13.2/15.9/19.1 yuan in the past 2022-2024, and the adjusted EPS increased by 2.61%/20.73%/19.69% YOY from 2022-2024, respectively, corresponding to 19.5/16.2/13.5 times of PE (Hong Kong dollar / RMB =0.86).

The company has solid business barriers and a strong ecosystem. Ecological nodes such as Wechat Video channels and applets also have strong liquidity potential. Fintech business has shown obvious performance flexibility, and Soochow Securities maintains the company's "buy" rating.