24Q1利润大超预期，广告加速增长

Investment Rating - The report maintains a "Buy" rating for the company [1]. Core Insights - The company reported a significant increase in Q1 2024 revenue and profit, with operating income reaching 159.5 billion RMB, a year-on-year growth of 6%, and adjusted net profit of 50.3 billion RMB, up 54% year-on-year, exceeding consensus expectations [2]. - The advertising revenue grew by 26% year-on-year, driven by strong performance in the WeChat ecosystem, particularly video accounts [4]. - The company is investing heavily in AI technology and high-value content, with a notable increase in capital expenditure from 4.6 billion RMB in the previous year to 15.2 billion RMB in Q1 2024 [5]. Financial Data and Profit Forecast - The company’s revenue is projected to grow from 6,090 billion RMB in 2023 to 6,723 billion RMB in 2024, with a year-on-year growth rate of 10.4% [6]. - Non-IFRS net profit is expected to increase from 1,577 billion RMB in 2023 to 1,990 billion RMB in 2024, reflecting a growth rate of 26.2% [6]. - The company’s gross profit margin is forecasted to improve from 48% in 2023 to 51% in 2024 [7]. Revenue Breakdown - The report details revenue contributions from various segments, with online games expected to generate 1,475 billion RMB in 2024, and advertising business projected at 1,015 billion RMB [11]. - The financial technology and enterprise services segment is anticipated to grow to 2,187 billion RMB in 2024, reflecting a growth rate of 7% [11]. Cash Flow and Capital Expenditure - The company reported a net cash position of 92.5 billion RMB in Q1 2024, significantly up from 54.7 billion RMB in the same period last year [5]. - Free cash flow for Q1 2024 was 51.9 billion RMB, indicating strong cash generation capabilities [5].