Investment Rating - The report maintains a "Buy" rating for Tencent Holdings (700 HK) with a target price of HKD 457, indicating a potential upside of 24.1% from the current closing price of HKD 368.20 [12][9][20] Core Insights - The report highlights strong growth in both domestic and overseas mobile game revenues, with domestic mobile game revenue expected to grow by 31% year-on-year in Q2 2024, significantly up from 9% in Q1 2024, driven by new game "Dungeon & Fighter: Origin" contributing approximately RMB 5.7 billion [9][10] - Overseas mobile game revenue is projected to increase by 47% year-on-year in Q2 2024, supported by Supercell's "Brawl Stars" maintaining high monthly revenue levels [9][10] - The advertising revenue is expected to grow by 16% year-on-year in Q2 2024, with a positive outlook on the long-term growth potential of the WeChat ecosystem [10] Revenue and Profit Forecast - The report estimates total revenue for Tencent in 2024 to reach RMB 663.1 billion, reflecting an 8.9% year-on-year growth, with net profit projected at RMB 203.7 billion, a 31.2% increase [11][17] - The report anticipates mobile game revenue to grow by 11% year-on-year in 2024, while PC game revenue is expected to decline by 4% due to high base effects from "Dungeon & Fighter" [2][11] Financial Metrics - The report provides a forecast for earnings per share (EPS) to be RMB 21.43 in 2024, with a price-to-earnings (P/E) ratio of 15.8 times [11][17] - The projected dividend yield for 2024 is estimated at 0.9% [11] Market Position and Competitive Landscape - Tencent's market position remains strong, with a significant share in both domestic and international gaming markets, bolstered by a robust pipeline of new game releases and sustained performance of existing titles [9][10][11]

Investment Rating - The investment rating for Tencent Holdings (00700) is "Buy" with a 6-month rating maintained [1]. Core Views - The report anticipates a recovery in overall performance with revenue growth expected to be +8% year-on-year for Q2 2024, and Non-IFRS net profit expected to grow by +36% year-on-year [1]. - The report highlights that the gaming segment is expected to see a continuous quarter-on-quarter acceleration, with both domestic and overseas game revenues projected to increase [1]. - The financial technology and enterprise services segment is expected to see a slight decline in growth due to macroeconomic factors, with revenue growth projected at +6% year-on-year [1]. Summary by Sections Overall Performance - Q2 2024 revenue is estimated at approximately 161.9 billion yuan, representing an 8% year-on-year increase, with gross profit expected to be around 85 billion yuan, a 20% increase year-on-year [1]. - Non-IFRS operating profit is projected to be about 57.3 billion yuan, a 25% year-on-year increase, with a Non-IFRS operating margin of 35.4% [1]. Gaming Segment - Domestic game revenue is expected to grow by +9.6% year-on-year, while overseas game revenue is projected to increase by +13% year-on-year [1]. - The new game "Dungeon & Warriors: Origin" is anticipated to significantly contribute to domestic game revenue, leading to a quarter-on-quarter acceleration over the next 3-4 quarters [1]. Advertising Segment - Advertising revenue is expected to grow by +19% year-on-year, with a gross margin projected to improve to 57.3% [1]. - The growth is attributed to healthy traffic growth on video accounts and the effective expansion of advertising [1]. Financial Technology and Enterprise Services - Revenue from financial technology and enterprise services is expected to grow by +6% year-on-year, with a slight decline in growth rate due to macroeconomic factors [1]. - The gross margin for this segment has improved significantly from 27.1% in Q4 2021 to 45.6% in Q1 2024 [1]. Investment Recommendations - The report suggests that the high-margin incremental businesses will support continued gross margin improvement, with an upward revision of Non-IFRS net profit forecasts for 2024-2026 [1]. - The target price is maintained at 476 HKD, with the stock trading at a forecasted PE of 15x/13x/12x for 2024/2025/2026, indicating a relatively low valuation compared to historical averages [1].

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Investment Rating - The report does not explicitly state an investment rating for the company [3]. Core Insights - WeChat Pay MY will stop new user registrations from August 1, 2024, and cease payment services by September 1, 2024, due to local business strategy adjustments in Malaysia. Existing users can still withdraw funds, and the service for Chinese tourists remains unaffected [3]. - WeChat Pay's international business is expanding, covering 74 countries and regions, supporting 31 currencies, with over 1,000 overseas partners and more than 6 million merchants. Monthly transaction volume and number of transactions have seen significant growth, with over 6 times and 4 times year-on-year increases, respectively, as of June 2024 [3]. - Tencent's new tactical shooting game "Delta Operation" is set to launch in September, promising an innovative gaming experience while retaining classic elements. The game has generated significant interest at events like ChinaJoy [3][27]. Summary by Sections WeChat Pay Developments - WeChat Pay MY will halt new registrations and payment services in Malaysia, but existing users can still access their funds. The service for Chinese tourists in Malaysia remains intact [3][28]. - WeChat Pay's international operations are thriving, with substantial growth in transaction numbers and amounts, indicating a robust expansion strategy [3]. Gaming Sector Updates - The National Press and Publication Administration approved 15 new games, including Tencent's "Rainbow Six" and "Final Fantasy XIV," which are expected to perform well in the market [26]. - Tencent's "Delta Operation" is anticipated to provide a unique gaming experience, leveraging advanced technology and gameplay mechanics, and is expected to attract a large player base upon release [27].

腾讯控股 20240802 原文 2024 年 08 月 03 日 17:51 发言人 00:00 的责任，国海证券就此保留一权利。在任何情况下，国海证券及其员工对使用本次会议信息或内容所引发 的任何直接或间接损失概不负责。市场有风险投资需谨慎。 发言人 00:17 各位投资者朋友大家晚上好，我是国海证券海外互联网的分析师尹璐。然后我今天给各位领导汇报一下腾 讯的一个投资逻辑和近期的一个基本面的一个分析。首先的话，我们还是回顾一下腾讯的一个基本的业务 结构。然后我们是根据公司 2023 年的一个财报口径，对它的整体的业务结构做了一个拆分。公司财报口 径的话是包括了三大核心的板块，增值业务、网络广告和金融科技和企业服务。增值业务这边的话在整体 的收入中占比是接近 50%。 发言人 00:50 这块的话它是划分为两个细分的业务，在线游戏和社交网络。在线游戏的话目前去年的一个收入是接近 1800 亿，然后在整体收入中占比是达到 30%，那他在利润中的占比会更高一些，在 40%以上。在线游戏 的话目前公司一个财报口径是划分为国内游戏跟海外游戏。然后海外游戏的一个占比是达到了整体在线游 戏的一个 30%以上。然后过去几 ...

腾讯控股 20240802_原文 2024 年 08 月 03 日 17:51 发言人 00:00 的责任，国海证券就此保留一权利。在任何情况下，国海证券及其员工对使用本次会议信息或内容所引发 的任何直接或间接损失概不负责。市场有风险投资需谨慎。 发言人 00:17 各位投资者朋友大家晚上好，我是国海证券海外互联网的分析师尹瑞。然后我今天给各位领导汇报一下腾 讯的一个投资逻辑和近期的一个基本面的一个分析。首先的话，我们还是回顾一下腾讯的一个基本的业务 结构。然后我们是根据公司 2023 年的一个财报口径，对它的整体的业务结构做了一个拆分。公司财报口 径的话是包括了三大核心的板块，增值业务、网络广告和金融科技和企业服务。增值业务这边的话在整体 的收入中占比是接近 50%。 发言人 00:50 这块的话它是划分为两个细分的业务，在线游戏和社交网络。在线游戏的话目前去年的一个收入是接近 1800 亿，然后在整体收入中占比是达到 30%，那他在利润中的占比会更高一些，在 40%以上。在线游戏 的话目前公司一个财报口径是划分为国内游戏跟海外游戏。然后海外游戏的一个占比是达到了整体在线游 戏的一个 30%以上。然后过去几 ...

Summary of Conference Call Company/Industry Involved - The conference call pertains to Guohai Securities, a financial services company in the investment banking sector [1] Core Points and Arguments - Guohai Securities emphasizes the importance of risk awareness in the investment market, indicating that investors should exercise caution [1] Other Important but Possibly Overlooked Content - The company disclaims any responsibility for direct or indirect losses resulting from the use of information or content from the conference call [1]

Investment Rating - The report provides a positive outlook on Tencent Holdings (700.HK) with expectations of continued growth in the gaming sector, particularly driven by new product launches in the second half of the year [5]. Core Insights - The Chinese gaming industry showed stable growth in the first half of 2024, with actual sales revenue reaching 147.27 billion yuan, a year-on-year increase of 2.1%. Mobile games accounted for 73% of this revenue, although their growth rate has slightly declined. In contrast, mini-program games experienced a rapid growth rate exceeding 60% [5]. - The primary growth driver for the gaming industry remains overseas markets, with domestic sales revenue from self-developed games decreasing by 3.3% to 117.74 billion yuan, while overseas market revenue increased by 4.2% to 8.55 billion USD [5]. - Tencent's market capitalization stands at 3338.8 billion HKD, with a total share capital of 9.321 billion shares. The stock price is currently at 358 HKD, with a 52-week high of 400.2 HKD and a low of 256.8 HKD [5]. - The report highlights the anticipated 10% year-on-year growth in Tencent's gaming revenue in the second half of the year, driven by new game releases such as "Dungeon & Fighter" mobile game [5]. - Tencent's new game "Brawl Stars" is set to launch its first domestic test on July 30, 2024, which is expected to attract a significant player base due to its short gameplay duration, catering to the fast-paced lifestyle of players [5]. Summary by Sections Industry Overview - The Chinese gaming market's actual sales revenue for the first half of 2024 was 147.27 billion yuan, with a growth rate of 2.1%. The user base for gaming remains stable at approximately 670 million, reflecting a year-on-year increase of 0.9% [5]. - The overseas market continues to be a significant growth area, with self-developed games seeing a decline in domestic sales but an increase in international revenue [5]. Company Performance - Tencent's gaming revenue is projected to grow by 10% year-on-year in the latter half of 2024, supported by the launch of new titles and the sustained performance of existing games [5]. - The report notes that Tencent's "Brawl Stars" has already achieved significant success in global markets, indicating strong potential for further growth in the domestic market [5].

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings (0700 HK) with a target price of 430 HKD [3][4] Core Views - Tencent's investment portfolio is undervalued, with its holdings in listed companies potentially reaching 500 billion RMB [4] - Tencent's investment value in listed companies grew by 6 6% YoY in Q1 2024, reaching 356 8 billion RMB [4] - Tencent's holdings in 67 listed companies across public markets totaled 528 1 billion RMB as of June 2024, a significant YoY increase [4] - Tencent's US-listed holdings saw a 52% YoY increase in market value, reaching 421 2 billion RMB, accounting for 80% of its total listed holdings [4] Investment Portfolio Analysis Listed Companies - Tencent's investment in listed companies grew by 6 6% YoY in Q1 2024, reaching 356 8 billion RMB [4] - Tencent's holdings in 67 listed companies across public markets totaled 528 1 billion RMB as of June 2024, a significant YoY increase [4] - US-listed holdings saw a 52% YoY increase in market value, reaching 421 2 billion RMB, accounting for 80% of its total listed holdings [4] - A-share holdings decreased by 34% YoY to 151 billion RMB, while Hong Kong-listed holdings increased by 1% to 698 billion RMB [4] Non-Listed Companies - Tencent's investment in non-listed companies decreased by 1 2% YoY in Q1 2024, totaling 325 9 billion RMB [42] - The total investment in both listed and non-listed companies reached 682 6 billion RMB in Q1 2024, a 2 7% YoY increase [42] Financial Performance - Q1 2024 Non-IFRS net profit reached 502 65 billion RMB, a 54% YoY increase, with a net profit margin of 31 5%, up 9 8 percentage points YoY [4] - Gross margin improved to 52 6%, up 7 2 percentage points YoY, driven by high-margin businesses such as WeChat Video Accounts and mini-games [4] - Video Account total user time increased by over 80% YoY in Q1 2024, with mini-game MAU exceeding 500 million and daily usage reaching 60 minutes [4] Business Segments Gaming - Domestic gaming revenue declined by 2% YoY in Q1 2024, while overseas gaming revenue grew by 3% [103] - Deferred revenue reached a historical high of 106 1 billion RMB in Q1 2024, up 9 2% YoY, indicating potential future revenue growth [4] - Key games such as "DNF Mobile" and "Delta Action" are expected to drive future performance [4] Advertising - Advertising revenue grew by 26% YoY in Q1 2024, outperforming the industry average of 4 6%, driven by WeChat Video Accounts and mini-programs [114] - Video Account advertising is expected to continue contributing to revenue growth, with low marginal costs due to existing WeChat infrastructure [145] Financial Technology and Enterprise Services - Revenue from financial technology and enterprise services grew by 7% YoY in Q1 2024, reaching 523 billion RMB [96] - Gross margin in this segment improved to 45 6%, driven by high-margin services such as wealth management and Video Account merchant service fees [120] Share Repurchase and Capital Allocation - Tencent's share repurchase program reached 375 15 billion HKD in Q2 2024, a 206% YoY increase [22] - The company plans to repurchase over 100 billion HKD in 2024, doubling the 2023 repurchase amount of 49 billion HKD [30] - Major shareholder Prosus's repurchase plan is expected to reach 54 1 billion HKD in 2024, remaining at a low level [21] Valuation and Outlook - The report forecasts Tencent's Non-IFRS net profit for 2024-2026 to be 2115 5, 2364 7, and 2554 2 billion RMB, respectively, representing increases of 13 3%, 12 4%, and 11 3% from previous estimates [97] - The current price implies a Non-IFRS PE of 15x, 14x, and 13x for 2024-2026, respectively [97]

Tencent Games was one of the exhibitors at ChinaJoy in Shanghai on July 26, 2024.BEIJING — When it comes to gaming, the use of ChatGPT-like generative artificial intelligence is still in an exploratory phase, according to Liang Chen, general manager of Tencent Cloud's internet industry department.Parent company Tencent is one of the world's largest gaming companies and owns U.S.-based Riot Games, home of popular titles such as League of Legends and Valorant. Chen said his role is to help game manufacturers ...