TENCENT(00700) 国信证券·2024-07-13 10:02Investment Rating - The investment rating for Tencent Holdings is "Outperform the Market" (maintained) [11][25]. Core Views - The report anticipates a 7% year-on-year revenue growth for Q2 2024, driven by stable growth in online advertising and a recovery in gaming business, while financial technology is impacted by macroeconomic conditions [6][29]. - The performance of the newly launched mobile game "DNF" is expected to significantly contribute to revenue in the upcoming quarters, with an estimated first-month revenue of 5 billion yuan [3][15]. - The video account feature is projected to drive a 20% increase in advertising revenue, enhancing monetization efficiency [28][48]. Summary by Sections Gaming Revenue - Domestic gaming revenue is expected to grow by 5% year-on-year, with the "DNF" mobile game performing exceptionally well since its launch on May 21 [3][13]. - The report estimates that Tencent's online gaming revenue for Q2 2024 will reach 476 billion yuan, reflecting a 7% year-on-year growth [18][29]. Financial Technology and Enterprise Services - Financial technology and enterprise services revenue is projected to be 501 billion yuan, a 3% year-on-year increase, with growth slowing due to macroeconomic factors [4][14]. - The report highlights that the main revenue source in this segment comes from payment services, which are closely tied to offline consumption [4]. Advertising Revenue - Advertising revenue is expected to reach 300 billion yuan in Q2 2024, marking a 20% year-on-year increase, primarily driven by the growth of the video account feature [35][48]. - The report notes that the video account's rapid user growth and the introduction of new advertising products will enhance monetization [28][51]. Profitability Forecast - The report forecasts a Non-IFRS net profit of 501 billion yuan for Q2 2024, representing a 33% year-on-year increase, with a net profit margin of 31% [16][28]. - The profit growth is attributed to high-quality growth in the business mix, leading to sustained improvements in gross margins [16][28].