The Zhitong Finance App learned that Citi released a research report stating that it maintains the “buy” rating of Tencent Holdings (00700) and is optimistic about its steady execution and sustainable rapid profit growth. The target price is HK$459. Citi expects that Tencent's domestic games will resume year-on-year growth in the second season. The e-commerce season may support video account advertising and live streaming expenses. It is believed that total revenue growth will accelerate again from the second quarter to the fourth quarter.

According to the report, Tencent will announce its first quarter results on May 14. Revenue is expected to meet market expectations, and profits may be slightly higher than market expectations. With a high base and lack of meaningful game product releases, domestic game revenue is expected to drop 6% year over year in the first quarter, while international game revenue will rise 1.5% year over year. Total turnover is expected to increase 5.3% year over year, gross profit is expected to increase 14.7% year over year, and non-GAAP net profit is expected to increase 35% year over year.