Nomura raised Tencent Holdings (00700)'s non-IFRS profit for the 2024 fiscal year by 5%.
The Zhitong Finance App learned that Nomura released a research report stating that it gave Tencent Holdings (00700) a “buy” rating and raised the non-IFRS profit by 5% for the 2024 fiscal year, while the revenue forecast remained largely unchanged, and the target price was raised from HK$467 to HK$478. The company's total revenue for the second quarter was in line with market expectations; non-IFRS profits exceeded expectations, which is believed to be driven by higher predicted non-operating revenue; gross margin reached 53.3%, which was also higher than expected.
The bank expects the group's online game revenue to recover further. Driven by blockbusters including “Dungeons and Warriors” and “Fearless Pact,” as well as Supercell's flagship game “Wild Brawl,” revenue may increase 12% year over year in the second half of the year. On the other hand, the difficult environment has led to a year-on-year decline in the Group's mobile online advertising revenue. Overall advertising revenue growth is expected to slow in the second half of the year, and is expected to increase 14% year over year.