In the spotlight, the Hong Kong Stock Exchange is the leader in online stocks$TENCENT (00700.HK)$The financial report for the third quarter of 2023 will be released after the Hong Kong stock market on November 15.
According to market consensus expectations,Tencent's revenue for the third quarter is expected to be 155.581 billion yuan (RMB, same below), up 11.06% year on year;Basic earnings per share were $3.64, down 11.21% year on year. Meanwhile, according to Bloomberg's unanimous expectations,Net profit under non-IFRS will reach 39.570 billion yuan, up 23% year on year.
UBS released a research report saying that maintaining Tencent's “buy” rating, it expects Q3 revenue to be 153 billion yuan, up 9.6% year on year; adjusted net profit is 40.5 billion yuan, up 26% year on year.
The company's current valuation has a premium compared to its peers, but under the weak macroeconomic economy, profits are visible, and management performance is stable and innovative. Among the three main business categories, the online game portfolio is diversified, the average number of daily users is huge, and the ability to monetize revenue is also high.As for advertising revenue, which is better than that of peers, there are prospects for growth, benefiting from improved technology and a video account user base. In terms of fintech, the e-wallet Tenpay also has monetization capabilities.
According to Guohai Securities Research Report, Tencent's Q3 revenue is expected to reach 155.7 billion yuan, an increase of 11% over the previous year. The adjusted net profit will reach 41 billion yuan, an increase of 27% over the previous year.By business, the revenue of the three businesses of advertising, fintech, and gaming is expected to increase significantly, reaching 23%, 14%, and 8%, respectively.
Nomura said,Tencent's advertising business is expected to be a major highlight.Driven by video ads, advertising revenue for the third quarter is expected to increase 27% year over year to 27 billion yuan, and increase by 9% from quarter to quarter. As for the game business, domestic and overseas game revenue is expected to increase by 5% and 16% respectively, driving the third quarter online game business revenue to increase 8% year over year to 46 billion yuan. Revenue from fintech and Tencent Cloud is estimated to increase by 8% and 3%, leading to Tencent's fintech and business services revenue growing 7% to $48 billion in the third quarter.
Can Tencent's Q3 performance be better than expected?
Will there be an increase in repurchase efforts after the performance?
What do you think is the value of Tencent's investment?
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Editor/Corrine