Investment Rating - The report maintains a "Buy" rating for Tencent Holdings [3][27]. Core Views - Tencent's Q2 2024 revenue reached 161.1 billion RMB, a year-on-year increase of 8%, aligning with expectations; adjusted operating profit grew by 27% to 58.4 billion RMB, and adjusted net profit surged by 53% to 57.3 billion RMB, significantly exceeding Bloomberg consensus of 48.7 billion RMB [3][27]. - The report highlights the resilience of Tencent's advertising revenue, which grew by 19% year-on-year in Q2, driven by user traffic growth and enhanced advertising technology [7][27]. - The overall gross margin for Q2 was 53.3%, marking a historical high, with core business margins also improving [8][27]. Summary by Sections Financial Performance - Tencent's revenue for 2024 is projected to be 664.2 billion RMB, with a year-on-year growth rate of 9.1% [21]. - The adjusted net profit forecast for 2024 is 214.9 billion RMB, reflecting a 36.3% increase compared to 2023 [21][27]. Market Position - Tencent has repurchased 61.4 billion HKD worth of shares as of July 12, 2024, indicating strong capital return strategies [6][32]. - The competitive landscape for internet companies remains favorable, with high growth certainty in gaming and increasing contributions from e-commerce and AI [6][27]. Business Segments - Domestic game revenue grew by 9% year-on-year, with flagship titles showing recovery and new games contributing positively [26][27]. - Financial technology and enterprise services revenue increased by 4% year-on-year, with enterprise services showing robust growth despite challenges in financial services [27]. Valuation - The target market capitalization has been adjusted from 45,266 billion RMB to 42,854 billion RMB, with a target price set at 504 HKD, indicating a potential upside of 35% [27].

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings [18] Core Views - Tencent's Q2 2024 revenue reached 161.1 billion RMB, showing a year-over-year (YoY) increase of 8% and a quarter-over-quarter (QoQ) increase of 1%, slightly below Bloomberg's consensus estimate of 161.35 billion RMB [16][26] - Non-GAAP net profit for Q2 2024 was 57.3 billion RMB, reflecting a YoY increase of 53% and a QoQ increase of 14%, exceeding the consensus estimate by 18% [16][26] - The gaming segment showed recovery with Q2 2024 revenue of 48.5 billion RMB, up 9% YoY and 1% QoQ, surpassing the consensus estimate of 47.3 billion RMB [16][30] - Advertising revenue reached 29.9 billion RMB in Q2 2024, a YoY increase of 19% and QoQ increase of 13%, driven by growth in video and long-form content [16][32] Financial Summary - Main revenue growth rates are projected as follows: -1.0% in 2022, 9.8% in 2023, 8.2% in 2024, 8.5% in 2025, and 7.4% in 2026 [3][17] - Non-GAAP net profit is expected to grow from 1,149 million RMB in 2022 to 2,166 million RMB in 2024, reflecting a growth rate of 39.7% [3][17] - Non-GAAP EPS is projected to increase from 12.00 RMB in 2022 to 23.24 RMB in 2024 [3][17] Business Segment Performance - Gaming revenue is expected to reach 196.5 billion RMB in 2024, with a growth rate of 9% [16][57] - Social network revenue is projected to be 121.9 billion RMB in 2024, reflecting a growth of 3% [16][57] - Financial and enterprise services revenue is anticipated to grow to 212.4 billion RMB in 2024, with a growth rate of 4% [16][46] Valuation - The estimated fair value of Tencent's stock is 453.34 HKD per share, based on a sum-of-the-parts (SOTP) valuation [16][49] - The report suggests that Tencent's core business value is approximately 3.83 trillion HKD, with an additional 396.1 billion HKD from investment business [16][49]

Freer Law/iStock Editorial via Getty Images Tencent (OTCPK:TCEHY) has been a strong performer relative to US tech peers, a seemingly unusual occurrence in the recent past. The company continues to represent an enviable collection of businesses spanning across multiple facets of daily Chinese life. However, I am growing concerned about the inability for overall growth rates to accelerate - potentially indicating that the company may have finally reached that inevitable moment where it is simply too big for i ...

| --- | --- | |------------------------------------------------|------------------------------------------| | 腾讯控股 (00700) | 报告日期： 2024 年 08 月 16 日 | | | | | 本土游戏收入同比转正，管理重心向内利润加速析出 | | 运营数据表现稳健 分析师：姚逸云 执业证书号：S1230524080007 yaoyiyun@stocke.com.cn 股票走势图 | --- | --- | |---------------------|----------------------------| | | | | | | | 1 | 《利润大超预期，估值彰显性 | | 价比》 2024.05.16 | | | 2 | 《高质量增长抬升净利， | | 《 DnF 》定档 | 24Q2 》 | | 2024.03.24 | | | 3 | 《聚焦高质量增长，待游戏供 | | 给有序释放》 | 2023.11.17 | 社交网络收入 303 亿元，同比上升约 2%，环比下降约 1% ...

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 | --- | --- | --- | --- | |--------------------|-------|---------------------- ...

Good day and good evening. Thank you for standing by. Welcome to Tencent Holdings Limited 2024 Second Quarter Results Announcement Webinar. I'm Wendy Huang from Tencent IR team. At this time, all participants are in a listen-only mode. After management's presentation, there will be a question and answer session. For participants who are dialing by phone, if you wish to ask a question, please press five or read your hands. If you are accessing from the Tencent Meeting for Realty application, please click the ...

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 ...