SINOLINK SECURITIES·2024-08-15 06:39Investment Rating - The report maintains a "Buy" rating for Tencent Holdings, expecting a price increase of over 15% in the next 6-12 months [14][12]. Core Insights - Tencent's revenue for Q2 2024 reached 161.1 billion CNY, a year-on-year increase of 8%, with Non-IFRS net profit at 57.3 billion CNY, up 53% year-on-year [9][10]. - The company's Non-IFRS net profit margin continues to improve, with a gross margin of 52.58%, an increase of 5.83 percentage points year-on-year [10]. - Key growth drivers include the recovery of domestic game revenue, strong performance in international markets, and significant growth in advertising revenue [10]. Financial Performance Summary - Revenue (CNY million): - 2022A: 554,552 - 2023A: 609,015 (growth rate: 9.82%) - 2024E: 667,475 (growth rate: 9.60%) - 2025E: 737,488 (growth rate: 10.49%) - 2026E: 806,212 (growth rate: 9.32%) [3] - Non-IFRS Net Profit (CNY million): - 2022A: 115,649 - 2023A: 157,688 (growth rate: 36.35%) - 2024E: 220,501 (growth rate: 39.83%) - 2025E: 252,126 (growth rate: 14.34%) - 2026E: 277,304 (growth rate: 9.99%) [3] - Diluted EPS (CNY): - 2022A: 12.407 - 2023A: 16.918 - 2024E: 23.656 - 2025E: 27.049 - 2026E: 29.751 [3] - P/E Ratio: - 2023A: 20.31 - 2024E: 14.52 - 2025E: 12.70 - 2026E: 11.55 [3] - ROE (Diluted): - 2022A: 26.09% - 2023A: 14.25% - 2024E: 16.85% - 2025E: 17.21% - 2026E: 16.17% [3]