TENCENT(00700) 信达证券·2024-07-18 13:01Investment Rating - The report maintains a "Buy" rating for Tencent Holdings (0700 HK) [2] Core Views - Tencent's 24Q2 revenue is expected to reach 1618 billion yuan, a year-on-year increase of 8 5% [2] - Non-IFRS net profit is projected to be 502 billion yuan, up 33 6% year-on-year [2] - The company's gaming business is performing well, with domestic and overseas game revenues expected to grow by 8% and 14% respectively [2] - Advertising revenue is anticipated to increase by 22% to 305 billion yuan, driven by WeChat video ads and mini-program ads [2] - Financial technology and enterprise services revenue is forecasted to grow by 7% to 520 billion yuan [2] Business Segment Analysis Gaming Business - Domestic gaming revenue is expected to reach 343 billion yuan, up 8% year-on-year, with new game "DNF Mobile" performing exceptionally well [2] - Overseas gaming revenue is projected to grow by 14% to 145 billion yuan, with "Brawl Stars" and "Squad Busters" contributing significantly [2] - Several new games are scheduled for release in the second half of 2024, including "Need for Speed: United" and "World Genesis" [2] Advertising Business - WeChat video ads are expected to drive growth, with the integration of video e-commerce into the WeChat ecosystem [2] - Mini-program ads are also performing strongly, benefiting from small game and short drama advertising [2] Financial Technology and Enterprise Services - Payment revenue growth has slowed due to weak offline consumption, but enterprise services continue to grow rapidly [2] - The company's AI capabilities, including the upgraded Hunyuan model and Yuanbao APP, are expected to enhance long-term competitiveness [2] Financial Projections - Revenue for FY2024-2026 is projected to be 6710/7333/7957 billion yuan, with year-on-year growth of 10 2%/9 3%/8 5% [2] - Non-IFRS net profit for the same period is expected to be 2180/2488/2729 billion yuan, with year-on-year growth of 38 3%/14 1%/9 7% [2] - The company's PE ratio under the Non-IFRS framework is projected to be 15/13/12x for FY2024-2026 [2]