HSBC Global Research published a report stating that Tencent (00700.HK) will announce its second-quarter performance in mid-August, with quarterly revenue expected to increase by 7% year-on-year, and net profit expected to increase by 27% year-on-year under non-International Financial Reporting Standards. Local and international gaming revenue is expected to increase by 4% and 7%, respectively, while advertising and fintech business services revenue are expected to increase by 17% and 5%, respectively.

The report pointed out that benefiting from the release of "Dungeon Fighter Mobile," as well as the strong growth of "Peacekeeper Elite" and "Clash of Clans," Tencent's local mobile gaming revenue is expected to increase by 19% year-on-year in the second quarter, with growth accelerating significantly from 6% in the first quarter, outperforming the industry. In terms of the international market, strong growth of existing Supercell games, new contributions from "Brawl Stars," and the rebound of "PUBG Mobile" have driven international mobile gaming revenues to increase by 41% year-on-year calculated at fixed exchange rates.

Therefore, HSBC raised Tencent's game business growth expectations for 2024 to 2026, and net profit forecasts were correspondingly raised by 3% to 4%, with the target price also raised from 450 yuan to 475 yuan, while the rating remained "buy."