TENCENT(00700) 国金证券·2024-03-20 16:00Investment Rating - The report maintains a "Buy" rating for Tencent Holdings [1][13]. Core Views - The report highlights the company's focus on enhancing shareholder returns and the development of evergreen games [1]. - It notes a significant improvement in gross margin and an increase in sales expenses, with plans for a substantial increase in share buybacks in 2024 [13]. - The report anticipates a recovery in gaming revenue in 2024, driven by the launch of new games and improved performance in the domestic market [13]. Financial Performance Summary - For Q4 2023, Tencent reported revenue of 155.2 billion yuan, a year-on-year increase of 7%, and a NON-IFRS net profit of 42.7 billion yuan, up 44% year-on-year [4]. - The full-year revenue for 2023 reached 609 billion yuan, reflecting a 10% year-on-year growth, with a NON-IFRS net profit of 157.7 billion yuan, up 36% year-on-year [4]. - The report provides projections for future financial performance, estimating NON-IFRS net profits of 180.8 billion yuan, 205.9 billion yuan, and 232.9 billion yuan for 2024, 2025, and 2026 respectively [13]. Key Business Segments - Gaming: Q4 2023 gaming revenue was 40.9 billion yuan, a 7% increase year-on-year, with expectations for improvement in 2024 due to new game launches [13]. - Advertising: Q4 2023 advertising revenue reached 29.8 billion yuan, a 21% increase year-on-year, driven by AI-enhanced advertising technology [13]. - Financial Technology and Enterprise Services: Revenue in this segment was 54.4 billion yuan for Q4 2023, marking a 15% year-on-year growth, supported by commercial payment and cloud service growth [13].