Jinwu Financial News | According to Guoxin Securities Research Report, Tencent (00700) is expected to achieve revenue of 157 billion yuan in 2024Q1, an increase of 5% over the previous year. Online advertising is expected to grow steadily in the first quarter, and the game business is still recovering from a high base. It is estimated that non-IFRS net profit will be 43.4 billion yuan, an increase of 33% over the previous year; the non-IFRS net profit margin will be 27%. The profit growth > revenue growth trend is expected to continue for 24 years due to changes in the revenue mix combined with the release of operating leverage.
According to the bank, it is recommended to pay attention to the market performance of new games and the development progress of video accounts. In the second quarter, Tencent's blockbuster game “DNF” mobile game was launched. It is recommended to observe the progress of the new game. Tencent's future profit release is highly deterministic and sustainable. Changes in revenue mix and operating leverage are long-term profit drivers. Tencent Video had a rapid user base in the early stages through social distribution. Currently, it has entered the early stages of commercialization. Video accounts have great potential for development, and advertising and live e-commerce are high-margin businesses, focusing on the impact of commercialization progress on Tencent Holdings' performance. The adjusted profit for 24-26 is estimated at $1847/2105/230.8 billion (maintaining the original forecast), maintaining the “buy” rating.