Guohai Securities·2024-03-23 16:00Investment Rating - The report maintains a "Buy" rating for Tencent Holdings (0700.HK) [11][101] Core Views - The overall performance of the company exceeded market expectations, with core business maintaining steady growth, benefiting from the increase in high-margin businesses [11][22] - The company reported a significant year-on-year increase of 44% in Non-IFRS net profit for Q4 2023 [11][22] - The revenue for Q4 2023 was 155.196 billion RMB, representing a year-on-year growth of 7% [11][42] Summary by Sections Overall Performance - The company achieved a total revenue of 1551.96 billion RMB in Q4 2023, with an operating profit of 414.01 billion RMB, and a net profit of 278.50 billion RMB [11][42] - The Non-IFRS net profit was reported at 426.81 billion RMB, marking a 44% increase year-on-year [11][42] Business Segments - Gaming Business: Revenue for Q4 2023 was 409 billion RMB, down 2% year-on-year, with domestic game revenue declining by 3% [54][82] - Social Network: Revenue decreased to 282 billion RMB, primarily due to declines in music and game live streaming services, partially offset by growth in music paid memberships and mini-game platform service fees [59][72] - Advertising: The advertising business grew by 21% year-on-year to 298 billion RMB, driven by increased demand for video ads and seasonal e-commerce activities [12][63] - Financial Technology and Enterprise Services: Revenue increased by 15% year-on-year to 543.79 billion RMB, with enterprise services growing approximately 20% [24][93] Profitability - The overall gross margin improved year-on-year by 7.3 percentage points, reaching 50% in Q4 2023 [11][22] - The Non-IFRS operating profit margin was reported at 31.7%, with a Non-IFRS net profit margin of 27.5% [78][81] User Metrics - The combined monthly active users (MAU) for WeChat and Weixin reached 1.343 billion, a year-on-year increase of 2% [17][31] - QQ smart terminal MAU reached 554 million, down 3% year-on-year [17][31]