TENCENT(00700) 信达证券·2024-11-22 08:27Investment Rating - The investment rating for Tencent Holdings is "Buy" with the previous rating also being "Buy" [2]. Core Insights - Tencent's revenue for Q3 2024 reached 167.2 billion yuan, representing an 8% year-on-year growth. Non-IFRS operating profit was 61.3 billion yuan, up 19% year-on-year, and Non-IFRS net profit attributable to shareholders was 59.8 billion yuan, reflecting a 33% year-on-year increase [2]. - The gaming business showed strong growth, with revenue of 51.8 billion yuan in Q3, a 13% year-on-year increase. Deferred revenue reached a record high of 113.1 billion yuan, up 23% year-on-year, providing solid support for future revenue growth [2][3]. - The advertising business, particularly through the video account, has significant potential for commercialization, with Q3 marketing services revenue at 30 billion yuan, a 17% year-on-year increase [2][3]. Financial Summary - For FY2024-2026, the projected revenues are 657.1 billion yuan, 717.8 billion yuan, and 776.6 billion yuan, with year-on-year growth rates of 7.9%, 9.2%, and 8.2% respectively. Non-IFRS net profits are expected to be 222.6 billion yuan, 251.7 billion yuan, and 275.3 billion yuan, with growth rates of 41.1%, 13.1%, and 9.4% respectively [3][4]. - Key financial metrics for 2024E include total revenue of 554.6 billion yuan, a gross margin of 52.8%, and a return on equity (ROE) of 19.7% [4]. Business Segments - The gaming segment continues to thrive, with domestic game revenue of 37.3 billion yuan, a 14% year-on-year increase, driven by flagship games like "Honor of Kings" and "Peacekeeper Elite" [2]. - The social network revenue grew by 4% year-on-year to 30.9 billion yuan, with music subscription numbers increasing by 16% to 119 million [2]. - The financial technology and enterprise services segment saw revenue of 53.1 billion yuan, a 2% year-on-year increase, with growth in wealth management services due to an expanding user base [2]. Market Position - The combined monthly active accounts for WeChat and QQ reached 1.382 billion, with a net increase of 11 million quarter-on-quarter [2]. - The company is focusing on enhancing its ToB (business-to-business) services, with significant growth in cloud services and merchant technology service fees [2].