Tencent's non-IFRS shareholders' net profit was up 12.9% yoy and up 2.8% qoq to RMB34,039 million in 2Q2021, primarily due to improvement in gross profit margin. Total revenue amounted to RMB138,259 million, increasing by 20.3% yoy and 2.2% qoq.
We revise down 2021-2022 value-added services revenue by 2.8% and 1.9%, respectively. While Tencent's flagship games maintained their strong performance, we expect growth of online games to slow down due to tightening regulations and severe competition in the domestic market.
We revise down 2021 online advertising revenue by 5.0% but revise up 2021 fintech and business services revenue by 2.3%. On the one hand, dragged down by headwinds in the education sector, the number of relative advertisements may significantly drop in 2H2021, which will result in slowing down of recovery in advertising business. On the other hand, due to faster-than-expected expansion in cloud and fintech services, we believe that Tencent's fintech and business services will play a more important role in revenue growth and stability of margins of the Company.
Our investment rating is "Buy" with target price of HK$650.00. Our new target price implies 38.6x, 32.3x and 27.3x 2021-2023 non-IFRS PER, respectively. We expect 2021-2023 non-IFRS basic EPS to be RMB14.018, RMB16.779 and RMB19.812, respectively, representing yoy growth of 8.4%, 19.7% and 18.1%.
Tencent's non-IFRS shareholders' net profit was up 12.9% yoy and up 2.8% qoq to RMB34,039 million in 2Q2021, primarily due to improvement in gross profit margin. Total revenue amounted to RMB138,259 million, increasing by 20.3% yoy and 2.2% qoq.
We revise down 2021-2022 value-added services revenue by 2.8% and 1.9%, respectively. While Tencent's flagship games maintained their strong performance, we expect growth of online games to slow down due to tightening regulations and severe competition in the domestic market.
We revise down 2021 online advertising revenue by 5.0% but revise up 2021 fintech and business services revenue by 2.3%. On the one hand, dragged down by headwinds in the education sector, the number of relative advertisements may significantly drop in 2H2021, which will result in slowing down of recovery in advertising business. On the other hand, due to faster-than-expected expansion in cloud and fintech services, we believe that Tencent's fintech and business services will play a more important role in revenue growth and stability of margins of the Company.
Our investment rating is "Buy" with target price of HK$650.00. Our new target price implies 38.6x, 32.3x and 27.3x 2021-2023 non-IFRS PER, respectively. We expect 2021-2023 non-IFRS basic EPS to be RMB14.018, RMB16.779 and RMB19.812, respectively, representing yoy growth of 8.4%, 19.7% and 18.1%.
