KAIYUAN SECURITIES·2024-05-22 07:02Investment Rating - The report maintains a "Buy" rating for Tencent Holdings, indicating an expected performance that will exceed the market by over 20% [31]. Core Views - The company has a rich pipeline of games, including titles based on popular IPs, which is expected to drive continued growth in its gaming business [32]. - The successful launch of the mobile game "DNF" has led to significant user engagement and is anticipated to contribute positively to the company's performance [8][23]. - The growth of the WeChat video account and mini-games is expected to enhance the company's revenue quality, with video account advertising and merchant services showing strong growth potential [24]. Financial Summary - For the fiscal years 2024 to 2026, the company is projected to achieve net profits of 156.65 billion, 187.26 billion, and 205.12 billion CNY respectively, with corresponding EPS of 16.6, 19.9, and 21.8 CNY [8]. - Revenue is expected to grow from 609.02 billion CNY in 2023 to 856.51 billion CNY by 2026, reflecting a compound annual growth rate [9]. - The company's gross margin is projected to improve slightly from 48.1% in 2023 to 49.2% in 2026, indicating operational efficiency [9].