Jinwu Financial News | According to Huaan Securities Research, Tencent Holdings (00700) Q3 revenue was 167.19 billion yuan (yoy +8.1%, qoq +3.8%), slightly lower than the agreed estimate of 167.93 billion yuan (miss 0.4%); achieved gross profit of 88.83 billion yuan (yoy +16.1%, qoq +3.4%), slightly lower than the agreed forecast of 89.58 billion yuan (miss 0.8%); achieved net profit of 53.23 billion yuan (yoy) +47.1%, qoq +11.8%), 45.33 billion (beat 17.4%), which surpassed the consensus forecast.
According to the bank, domestic game revenue was 37.3 billion yuan (yoy +14%), mainly benefiting from “Fearless Contract”, “Wang Zhe Rongyao”, “Peace Elite” and “DNFM” revenue growth; international game revenue of 14.5 billion yuan (yoy +9%), which was lower than the agreed estimate of 15 billion yuan, mainly due to the increase in retention rates of some games, which extended the revenue deferral cycle accordingly. In terms of revenue, the expansion of “VALORANT” from client to console drove a 30% year-on-year increase in revenue. Overall, the gaming business is growing steadily.
The bank said it expects the company's 24/25/26 net profit (non-IFRS) to be 220.804/238.912/260.274 billion yuan. The previous forecast was 211.577/237.304/261.435 billion yuan. The company's games and advertising have a long-term competitive advantage and maintain a “buy” rating.
