Haitong International published a research report stating thattropicslotsTencent's first-quarter revenue was in line with expectations, mainly driven by strong advertising revenue. Adjusted net profit exceeded expectations by 17%tropicslots; Net profit margin was 4 percentage points better than expected. Revenue from both domestic and foreign games increased year-on-year.
Looking forward to the second quarter, the bank expects Tencent's game business structure to continue to improve, and the delayed confirmation in the first quarter will continue to benefit game revenue. At the same time,"Dungeons and Warriors" will be launched on May 21, driving an increase in contribution revenue. Therefore, the bank expects its game business to recover in the second quarter and accelerate growth in the second half of the year. It expects game revenue in the second quarter and fiscal year 2024 to be 46 billion yuan and 1.1 billion yuan respectively.tropicslots, 90.6 billion yuan, up 3% and 6% respectively year-on-year. The bank mentioned that the group's gross profit margin is expanding and new high-profit businesses will continue to drive high-quality growth. It is expected that the group's adjusted net profit for the second quarter and the full year will be 47.6 billion yuan and 201.5 billion yuan respectively, up 27% year-on-year and 28%, respectively, with net profit margins of 29tropicslots.5% and 30.5%.
The bank raised the group's adjusted net profit forecast for fiscal year 2024 by 7%, raised its target price from HK$430 to HK$464, maintaining its "outperform" rating.
