Chinese Tech Giant Tencent's Quarterly Profit Jumps 82% as Key Gaming Unit Accelerates
Bank of America Securities reiterates a "buy" rating for Tencent, with a target price of HKD 480.
Bank of America Securities released a research report, reaffirming the "buy" rating on Tencent Holdings (00700), raising the earnings forecast for 2024 to 19.19 yuan, 21.66 yuan, and 24.17 yuan, respectively, maintaining a target price of HKD 480. The report stated that Tencent's second-quarter revenue increased by 8% year-on-year to RMB 161 billion, which is in line with expectations; the local and overseas gaming business increased by 9% year-on-year, and the advertising business grew by 19% year-on-year, which exceeded expectations and offset the impact of the slowdown in the growth of the financial technology business, resulting in profits exceeding expectations. Gross margin continues to expand both year-on-year and quarterly.
Tencent's Domestic Games Revenue Growth Could Pick Up -- Market Talk
Tencent Holdings Target Price Raised to HK$527.00 From HK$515.00 by Citi Research >0700.HK
Hong Kong stock concept tracking | Tencent's core gaming business shows signs of recovery. The company is making huge profits through overseas gaming (including concept stocks).
Tencent management emphasized that the gaming industry still has great potential, but there are cycles and it may slump when there is a lack of innovation or new supply.
[Brokerage Focus] CMB International maintains a buy rating on Tencent (00700) and is optimistic about its revenue and profit growth in the second half of the year.
China Merchants Securities | In the research report, Zhong Yin Guojie pointed out that Tencent's (00700) Q2 performance showed that total revenue increased by 8% year-on-year to RMB 161.1 billion, which was basically the same as the bank's expectations (RMB 160.9 billion) and market expectations (RMB 161.4 billion); non-IFRS operating profit increased by 27% year-on-year to RMB 58.4 billion, basically in line with the bank's expectations (RMB 57.7 billion); non-IFRS net income increased by 53% year-on-year to RMB 57.3 billion, exceeding the bank's and market's expectations by 17% and 18% respectively, mainly due to net income.
