Citigroup released a research report stating that Tencent (00700.HK) will announce its second-quarter performance in mid-August. It is currently predicted that the net profit under the non-GAAP should increase by 25% year-on-year, reaching 47 billion RMB, and the profit margin should reach 29.3%. The total revenue is expected to increase by 7% year-on-year to 159.7 billion RMB, and the revenue growth is expected to be 9% compared to the market, reaching 162 billion RMB. The market predicts that the non-GAAP net profit will be 48.1 billion RMB.

The bank predicted that Tencent's online gaming revenue in the next quarter would increase by 5.5% year-on-year to 46.9 billion RMB. Among them, domestic game revenue is expected to increase by 4.5% to 33 billion RMB, and international game revenue is expected to increase by 8% to 13.7 billion RMB. Driven by the continuous development of video platforms, Citigroup predicts that advertising revenue for the next quarter will increase by 15.6%, reaching 28.9 billion RMB. Financial services revenue is expected to grow by 5% to 51 billion RMB, with cloud computing business revenue accounting for 11 billion RMB, an increase of 17%.

Tencent launched the blockbuster mobile game "Dungeon and Fighter" on May 21, which has been the top of the iOS platform ranking for four consecutive weeks. Citigroup predicts that the game will contribute approximately 15.3 billion RMB to this year's revenue, accounting for 8% of the total game revenue. Citigroup rates Tencent as a "buy" with a target price of 515 RMB.