Investment Rating - The report maintains a "Buy" rating for Tencent Holdings [9] Core Insights - Domestic game revenue has turned positive year-on-year, with management focusing on internal profit acceleration [1][24] - The company achieved a revenue of 161.1 billion yuan in Q2 2024, representing an 8.0% year-on-year increase and a 1.0% quarter-on-quarter increase, aligning closely with Bloomberg consensus expectations [8] - Non-IFRS net profit for Q2 2024 reached 57.31 billion yuan, up 52.6% year-on-year and 14.0% quarter-on-quarter, exceeding Bloomberg consensus by 27.3% [29] Summary by Sections Revenue Performance - Social network revenue was 30.3 billion yuan, up approximately 2% year-on-year but down about 1% quarter-on-quarter, slightly below Bloomberg consensus [5] - Financial technology and enterprise services revenue was 50.4 billion yuan, a 3.7% year-on-year increase but down 3.6% quarter-on-quarter, falling short of Bloomberg consensus by 10.5% [6] - Online advertising revenue was 29.9 billion yuan, up 19.5% year-on-year and 12.7% quarter-on-quarter, exceeding Bloomberg consensus by 15.8% [12] Profitability Metrics - Gross margin for the company was 53.3%, an increase of 5.8 percentage points year-on-year and 0.7 percentage points quarter-on-quarter, surpassing Bloomberg consensus by 3.0 percentage points [29] - The company’s operating costs decreased by 4.0% year-on-year, primarily due to reduced long video content costs and optimized cloud project deployment costs [29] Future Projections - The company forecasts Non-IFRS net profits of 216.5 billion yuan, 247.9 billion yuan, and 279.2 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 37.3%, 14.5%, and 12.7% [29] - The report estimates a target price of 456.5 HKD for 2025, indicating a potential upside of 23.9% from the current stock price [29]

Investment Rating - The report maintains an "Accumulate" rating for Tencent Holdings [1][19]. Core Insights - The report highlights the resilience of the advertising and gaming businesses, projecting continued high growth throughout the year. The forecast for Non-IFRS net profit for 2024-2025 has been raised to RMB 217.4 billion and RMB 241.1 billion, respectively, from previous estimates of RMB 196.2 billion and RMB 221.9 billion. The current price corresponds to a PE ratio of 14.7x and 13.2x, with a target price set at HKD 458, reflecting a PE of 18x and 16x [19]. Financial Overview - In Q2 2024, the company achieved revenue of RMB 161.1 billion, a year-on-year increase of 8%, which was in line with expectations. The Non-IFRS net profit reached RMB 57.3 billion, a significant year-on-year increase of 53%, primarily due to a reduction in income tax from the reversal of deferred tax by overseas subsidiaries [19][21]. - The gross margin for Q2 2024 was 53.3%, up 0.7 percentage points quarter-on-quarter, slightly exceeding expectations, driven by better-than-expected gross margins in VAS and FBS businesses, which were 57.1% and 47.6%, respectively [19][21]. Segment Performance - Value-added services (VAS) revenue in Q2 2024 was RMB 78.8 billion, a year-on-year increase of 6%. The gaming business showed steady recovery, with domestic and international game revenues reaching RMB 34.6 billion and RMB 13.9 billion, respectively, both growing by 9% year-on-year [19][12]. - Advertising revenue for Q2 2024 was RMB 29.9 billion, a year-on-year increase of 19%, primarily driven by growth in video accounts and long video revenues, with video account advertising revenue increasing by over 80% [19][29]. - Financial technology and enterprise services revenue was RMB 50.4 billion, with growth slowing to 4%, mainly due to weak consumer spending affecting commercial payments [19][41].

Investment Rating - The investment rating for the company is "Outperform the Market" [14][11][29] Core Views - The company's revenue growth is driven by strong performance in advertising and gaming sectors, with a notable increase in profit margins. In Q2 2024, the company achieved revenue of 161.1 billion yuan, a year-on-year increase of 8%, primarily from advertising and gaming contributions [11][5][12] - The report highlights the improvement in the revenue mix, with a higher proportion of high-margin businesses such as WeChat video accounts and mini-game platform service fees [6][11] - The company is expected to benefit from the release of more advertising inventory, particularly in video accounts, and the ongoing development of e-commerce within its ecosystem [12][25][29] Financial Forecasts and Metrics - Revenue (in million yuan) is projected to grow from 609,015 in 2023 to 791,335 in 2027, with annual growth rates decreasing from 9.8% in 2023 to 5.0% in 2027 [1] - Non-IFRS net profit is expected to rise from 157,688 million yuan in 2023 to 288,538 million yuan in 2027, with a significant growth rate of 36.4% in 2023, tapering to 4.9% by 2027 [1] - The adjusted EPS is forecasted to increase from 16.63 yuan in 2023 to 30.96 yuan in 2027 [1] - The EBIT margin is anticipated to improve from 28.7% in 2023 to 38.2% in 2027, indicating enhanced operational efficiency [1] - The company's price-to-earnings (P/E) ratio is projected to decrease from 20.3 in 2023 to 10.9 in 2027, suggesting a more attractive valuation over time [1] Revenue Breakdown - The gaming segment's revenue is expected to accelerate in the second half of 2024, with a 9% year-on-year increase in Q2 2024, driven by successful game launches and recovery in popular titles [12][39] - The advertising revenue for Q2 2024 reached 299 billion yuan, reflecting a 19% year-on-year growth, supported by upgraded advertising technology and increased demand for video account ads [12][24] - Financial technology and enterprise services revenue grew by 4% year-on-year to 504 billion yuan in Q2 2024, although it faced macroeconomic pressures [13][42] Profitability Insights - The adjusted operating profit for Q2 2024 was 58.4 billion yuan, a 27% increase year-on-year, with a Non-IFRS net profit margin of 35.6%, up 10 percentage points from the previous year [11][16] - The overall gross margin for the company improved to 53% in Q2 2024, with significant contributions from value-added services, online advertising, and financial technology sectors [17][18]

Tencent Music Entertainment Group TodayTMETencent Music Entertainment Group$11.17 +0.04 (+0.36%) 52-Week Range$5.96▼$15.77Dividend Yield1.16%P/E Ratio24.28Price Target$12.72Add to WatchlistTencent Music Entertainment Group NYSE: TME is the largest music streaming company in China. The company’s shares have been a bright spot for investors in the country over the past 52 weeks, providing a total return of 84%. Meanwhile, the SPDR S&P China ETF NYSEARCA: GXC has returned -8%.Despite a 15% drop in Tencent shar ...

证券研究报告|港股公司点评报告 [Table_Title] 游戏业务显著回暖，广告增长彰显韧性 [Table_Summary] 事件概述 公司发布 2024 年二季度业绩报告。报告期内，公司营收同比增长 8%至 1611.2 亿元人民币，毛利同比增长 21%至 859 亿元，经调整利润同比增长 27%至 584.4 亿元。 ► 游戏如期回暖，看好三季度增长持续 ► 广告业务彰显韧性，金科企服增长承压 据公司公告，截至 2024 年 6 月 30 日止六个月内，公司于中国香港联交所以总代价约 523 亿港元（未计 开支）购回合共 154730000 股（1.55 亿）股份，购回的股份其后已被注销。我们根据当下每天 10 亿的回购节 奏判断，预计 2024 年回购总额有望超 1600 亿港元。高分红及回购计划彰显公司对股价的长期信心，同时维持此 前观点，大股东减持有望进入尾声，股价抛压可能逐步减弱。 [Table_Date] 2024 年 08 月 15 日 | --- | --- | --- | --- | |--------------------|-------|---------------------- ...

Tencent Holdings Limited 2024 Second Quarter Results Announcement Webinar Summary Company Overview - The document pertains to Tencent Holdings Limited, a leading technology and entertainment conglomerate based in China. Core Points and Arguments - The webinar is focused on the announcement of the second quarter results for 2024, indicating the company's ongoing performance and strategic direction [1]. Additional Important Content - The session is structured to include a management presentation followed by a question and answer segment, highlighting the company's commitment to transparency and engagement with stakeholders [1].

There is still a lot of work to be done, but it is starting to look like the technology sector in China’s stock market could soon be about to pose a recovery. There are not too many investors brave enough to venture into overseas markets, let alone China, given the current geopolitical tensions that negatively affect business valuations in the region. However, no country is excluded from these effects.Tencent TodayTCEHYTencent$47.34 -1.64 (-3.35%) 52-Week Range$33.00▼$52.10Dividend Yield0.80%P/E Ratio24.92P ...

Investment Rating - The report provides a positive outlook for Tencent Holdings, anticipating a revenue increase of 8.14% year-on-year for Q2 2024, with a target price of 372 HKD [5]. Core Views - Tencent is expected to report a revenue of 161.3 billion RMB for Q2 2024, with significant contributions from its value-added services and advertising segments [5]. - The gaming sector shows strong recovery potential, with new game launches expected to drive revenue growth in the coming quarters [5]. - The advertising business is projected to maintain high gross margins, supported by the growth of video accounts and operational optimizations [5]. - The cloud and financial services are focusing on high-quality growth while reducing costs, with an emphasis on the demand for cloud computing driven by large model market conditions [5]. Revenue Expectations - Anticipated revenue for value-added services in Q2 is 78.2 billion RMB, a year-on-year increase of 5.33% [5]. - Advertising revenue is expected to rise by 16.97% year-on-year to 29.2 billion RMB [5]. - Cloud and financial services are projected to generate 52.4 billion RMB, reflecting a year-on-year growth of 7.66% [5]. Profitability Forecast - Non-GAAP net profit for Q2 is expected to increase by 28.24% year-on-year, reaching approximately 48.1 billion RMB [5].

公 司 研 究 / 传 媒 互 联 网/ 证 券 研 究 报 告 [Table_ 【投资要点 Summary]】 公司发布 2024 年二季度财报。 -21.31% -13.01% -4.72% 3.58% 11.88% 20.18% 8/15 10/15 12/15 2/15 4/15 6/15 腾讯控股 [Table_ 东方财富证券研究所 Author] 证券分析师：高博文 恒生指数 毛利率显著提升，费用略有提升。2024 年二季度，公司毛利率为 53.31%， 同比增长 5.83pct，主要系游戏、视频号佣金等高毛利收入增长所致；其 中，报告期内公司增值服务/网络广告/金融科技及企业服务（含其他）毛 利率分别同比增长 3.09pct/6.70pct/9.25pct。费用方面，报告期内，公 司销售及市场推广费用率 5.68%，同比增长 0.11pct；一般及行政费用率 17.06%，同比增长 0.03pct。 【投资建议】 公司主营业务优势稳固，后续新老游戏流水持续贡献收入增量，视频号小 程序生态商业化提升，AI 赋能业务新增长，业绩有望稳健提升。结合当前 公司经营情况，我们调整公司盈利预测，预计公司 2 ...

Investment Rating - The report maintains a "Recommend" rating for the company, with expected Non-IFRS net profit attributable to the parent company of 2110.59/2297.62/2500.01 billion yuan for 2024-2026, corresponding to a PE of 15x/14x/13x [27] Core Views - The company's business demonstrated strong growth resilience in the first half of 2024, with gaming performance slightly exceeding expectations [27] - The company's advertising business achieved revenue of 563.77 billion yuan in the first half of 2024, a year-on-year increase of 23%, driven by AI-powered ad technology platform upgrades and ecosystem growth [31] - The company's overall gross profit margin reached 53% in the first half of the year, an increase of over 6 percentage points year-on-year [31] Financial Performance - In the first half of 2024, the company achieved revenue of 3206.18 billion yuan, a year-on-year increase of 7%, and net profit attributable to the parent company of 895.19 billion yuan, a year-on-year increase of 72% [10] - The company's value-added services, online advertising, and fintech and business services accounted for 49%, 19%, and 31% of revenue, respectively [10] - The company's gaming business achieved revenue of 1574.51 billion yuan in the first half of 2024, a year-on-year increase of 2%, with domestic market game revenue of 691 billion yuan and international market game revenue of 275 billion yuan [15] Financial Projections - Revenue is expected to grow from 609015 million yuan in 2023 to 793115 million yuan in 2026, with a compound annual growth rate of 9.2% [16] - Non-IFRS net profit attributable to the parent company is expected to grow from 157688 million yuan in 2023 to 250001 million yuan in 2026, with a compound annual growth rate of 16.7% [16] - The company's gross profit margin is expected to increase from 48.1% in 2023 to 53.4% in 2026 [16] Market Data - As of August 14, 2024, the company's H-share closing price was HK$373.80, with a total market capitalization of HK$3484.2 billion [6] - The company's total share capital is 9320.97 million shares [6]