Jingu Finance News | Huaan Securities released research indicating that Tencent Holdings (00700) Q3 revenue was 167.19 billion yuan (+8.1% year-on-year, +3.8% quarter-on-quarter), slightly lower than the consensus expectation of 167.93 billion (miss 0.4%); achieved gross profit of 88.83 billion yuan (+16.1% year-on-year, +3.4% quarter-on-quarter), slightly lower than the consensus expectation of 89.58 billion (miss 0.8%); achieved net income of 53.23 billion yuan (+47.1% year-on-year, +11.8% quarter-on-quarter), exceeding the consensus expectation of 45.33 billion (beat 17.4%).
The bank pointed out that domestic game revenue was 37.3 billion yuan (+14% year-on-year), mainly driven by the increased revenue from games such as "Fearless Pact", "King of Glory", "Peace Elite", and "DNFM"; international game revenue was 14.5 billion yuan (+9% year-on-year), slightly lower than the consensus expectation of 15 billion yuan, mainly due to the increased retention rate of some games, extending the revenue deferral period accordingly, in terms of revenue, "VALORANT" expanding from the client to the console drove a 30% year-on-year growth in revenue. Overall, the gaming business shows stable growth.
The bank stated that the company's net income (Non-IFRS) for 24/25/26 is estimated to be 220.804/238.912/260.274 billion yuan. The previous forecast values were 211.577/237.304/261.435 billion yuan. The company's gaming and advertising businesses have long-term competitive advantages, maintaining a "buy" rating.
