TENCENT(00700) 开源证券·2025-03-20 03:05Investment Rating - The investment rating for Tencent Holdings is "Buy" (maintained) [1] Core Views - The company achieved a revenue of 660.3 billion CNY in 2024, representing a year-on-year growth of 8%, and a net profit of 194.1 billion CNY, which is a significant increase of 68% year-on-year [4] - The strong performance in 2024 Q4 includes a revenue of 172.4 billion CNY (up 10% year-on-year) and a net profit of 51.3 billion CNY (up 90% year-on-year) [4] - The growth in value-added services revenue reached 79 billion CNY (up 14% year-on-year), driven by strong performances in domestic and overseas gaming [4] - The company is expected to continue its growth trajectory, with projected net profits of 216.9 billion CNY, 236.3 billion CNY, and 255.5 billion CNY for 2025, 2026, and 2027 respectively [4] Financial Summary and Valuation Metrics - Revenue for 2024 is reported at 660.3 billion CNY, with a projected revenue of 707.1 billion CNY for 2025 [7] - The net profit for 2024 is 194.1 billion CNY, with projections of 216.9 billion CNY for 2025 [7] - The gross margin is expected to improve from 52.9% in 2024 to 55.1% by 2027 [7] - The earnings per share (EPS) are projected to be 23.6 CNY for 2025, with a price-to-earnings (P/E) ratio of 21.3 [7] Business Growth Drivers - The integration of AI technologies has significantly boosted user engagement, with daily active users of Tencent's products increasing over 20 times since the introduction of DeepSeek [5] - The number of evergreen games has increased from 12 in 2023 to 14 in 2024, with a strong pipeline of new games [6] - The advertising revenue from video accounts grew by 60% year-on-year in Q4 2024, indicating a robust monetization strategy [6]