CLSA Forecasts Slower 1Q Revenue Growth for TENCENT

CLSA's research report anticipates a 5.9% YoY revenue growth for TENCENT in 1Q24, reaching RMB158.9 billion. The expected decline in domestic game revenue is cited as a contributing factor. However, the report suggests that adjusted EBIT will see a robust 15.6% YoY increase to RMB53.2 billion.

Despite the anticipated slowdown in revenue growth, CLSA remains optimistic about TENCENT's long-term prospects, forecasting a 15-20% 3-year EPS CAGR growth and a total yield of 5%. Consequently, CLSA maintains its Buy rating for TENCENT, with a target price of $440.