Major institution ratings丨Morgan Stanley: Tencent's first quarter performance exceeded expectations in all aspects, maintaining a "Shareholding" rating and a Target Price of 630 Hong Kong dollars.

On May 15, at Gelonghui, Morgan Stanley published a report indicating that Tencent's first-quarter performance exceeded expectations in all aspects, with revenue growing 13% year-on-year, beating market expectations by 3%. The gaming Business outperformed expectations, with estimates showing a year-on-year increase of 17%, accelerating compared to last year's last quarter. Advertising revenue increased by 20% year-on-year, also surpassing market expectations by 3%. Revenue from CNI Xiangmi Lake Fintech Index and corporate services grew nearly 5% year-on-year, meeting expectations. Gross margin grew 20% year-on-year, exceeding market expectations by 6%. Gross margin increased by 3.2 percentage points to 55.8%. Non-International Financial Reporting Standards (Non-IFRS) operating profit grew 18% year-on-year, surpassing market expectations by 4%. Tencent repurchased HKD 17.1 billion in the first quarter, with a goal of over HKD 80 billion for the year. Capital expenditures in the first quarter were HKD 27.5 billion, compared to HKD 36.5 billion in the previous year's last quarter, with annual capital expenditure guidance set at a low double-digit percentage of total revenue. Morgan Stanley has given Tencent an "Shareholding" rating, with a Target Price of HKD 630.