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<Research>BOCI: TENCENT 3Q Profit Beats; Committed Strategies Address Cyclical Changes Effectively
Recommend 8 Positive 14 Negative 4 |
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TENCENT (00700.HK)'s 3Q24 adjusted net profit gained 33% YoY, beating estimates, while total revenue rose 8% YoY, with a GPM of 53.1%, according to a research report from BOCI. The broker forecast that game revenue growth will accelerate in 4Q24, online ad growth will decelerate, fintech will gradually recover, and basic service revenue will remain solid. BOCI expected the gradual monetization of traffic in Tencent's ecosystem with the application of various infrastructure and artificial intelligence tools to improve profitability. The broker maintained a Buy rating on the company, raising its TP from $445 to $470 and its net profit forecast for FY2024-26 by 3%-4%, while lowering its revenue forecast for FY2025-26 by 2%-3% to reflect its conservative view on the recovery of commercial payments and online ads. It believed that the GPM expansion will sustain, but at a slower pace due to revenue streams mix shift. AAStocks Financial News |
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