News summary
Tencent's total revenue in the first quarter was 159.5 billion yuanonlinecasinorealmoneyfreeplay, an increase of 6%, adjusted profit of 50.3 billion yuan, an increase of 54%, second-quarter revenue is expected to increase by 7% to 159.9 billion yuan, and advertising business will increase by 16%. Increase revenue forecasts for 2024 and 2025 by 8 respectivelyonlinecasinorealmoneyfreeplay.2% and 7.8%, the target price rose to HK$457, maintaining the "Buy" rating.
Newsletter text
[The Bank of Communications International research report revealed that Tencent's total revenue in the first quarter reached 1.onlinecasinorealmoneyfreeplay,59.5 billion yuan, a year-on-year increase of 6% and a month-on-month increase of 3%. Gross profit margin and adjusted operating profit margin were 53% and 37%, respectively, an increase from the same period last year. Adjusted net profit was 50.3 billion yuan, a year-on-year increase of 54%, significantly exceeding revenue growthonlinecasinorealmoneyfreeplay; Adjusted earnings per share was 5.26 yuan, a year-on-year increase of 57%, exceeding market expectations.] BOCOM International predicts that Tencent's game revenue will accelerate growth with the upcoming launch of new games such as "Dungeon and Warriors" and the recovery of growth of classic games such as "Glory of the King". In addition, video numbers will continue to benefit from the establishment of a merchant and user ecosystem, further promoting the improvement of liquidity. Tencent's revenue in the second quarter of 2022 is expected to increase by 7% to 159.9 billion yuan, with advertising business expected to grow by 16% to 29 billion yuan, games business expected to grow by 4%, and corporate services expected to grow by 16%. The bank also expects Tencent's revenue to increase by 8.2% and 7.8% in fiscal years 2024 and 2025, respectively, and raised its gross profit forecast and adjusted net profit forecast. The target price was also raised from HK$395 to HK$457, maintaining the "Buy" rating.