Zhitong Finance and Economics APP learned that Nomura released a research report stating that it maintains a "buy" rating on Tencent (00700) and expects second-quarter earnings to exceed expectations with a target price of HK$467. The bank estimates that Tencent's non-GAAP earnings per share will increase steadily (34% year-on-year growth), while institutions expect a 31% year-on-year growth, and its revenue growth (9% annual growth) may remain consistent.

The bank pointed out that driven by the annual growth of 9.6% in domestic game revenue and 11% in overseas game revenue, Tencent's online game revenue may increase by 10% annually. Tencent's domestic game business may recover in the second quarter, as China’s new heavyweight game, Dungeon and Fighter, was released in China. Since its release on May 21st, the game has consistently ranked first in daily revenue. Nomura expects Tencent's online advertising revenue to increase by 17% annually, with video account(VA) advertising accounting for 18% of the share. The bank expects its gross margin to increase by 6.6 percentage points annually to 54%, providing support for a solid 34% profit growth in the second quarter.