TENCENT(00700) 长江证券·2025-03-20 02:39Investment Rating - The investment rating for Tencent Holdings is "Buy" and is maintained [7] Core Insights - Tencent achieved revenue of 172.4 billion yuan in Q4 2024, representing a year-on-year increase of 11% and a quarter-on-quarter increase of 3%. Operating profit reached 51.5 billion yuan, up 24% year-on-year, while Non-IFRS net profit attributable to shareholders was 55.3 billion yuan, reflecting a 30% year-on-year growth [2][4] Revenue Performance - The strong performance in the gaming sector, particularly from evergreen games and new game launches, drove Q4 revenue growth in both domestic and overseas markets. Domestic game revenue increased by 23% to 33.2 billion yuan, while overseas game revenue rose by 15% to 16 billion yuan [8] - The advertising segment continued to show robust growth, with marketing services revenue increasing by 17% to 35 billion yuan, supported by strong demand from advertisers [8] Profitability - Tencent's profit growth has consistently outpaced revenue growth for 10 consecutive quarters, with a Q4 gross margin of 52.6%, up 2.6 percentage points year-on-year. The gross margins for value-added services, marketing services, and financial technology & enterprise services also saw improvements [8] Capital Expenditure and Shareholder Returns - Capital expenditure in Q4 surged by 386.15% year-on-year to 36.578 billion yuan, with a significant portion allocated to AI projects. The company plans to repurchase over 80 billion Hong Kong dollars and increase the annual dividend by 32% to 4.50 Hong Kong dollars per share [8]