DBS: Maintains "Buy" rating on Tencent, raises adjusted earnings forecast from this year to 2026

DBS published a research report stating that online games and online advertising are Tencent's main revenue drivers, with a compound annual growth rate of 8% and 15% from 2023 to 2026. The bank expects Tencent's video business monetization to accelerate, raising Tencent's adjusted earnings forecast for 2021 to 2026 by 9% to reflect continued improvement in operational efficiency, with annual adjusted earnings expected to grow by 36%, 11%, and 10% respectively during the forecast period. Given its clear profit outlook and shareholder-friendly return policy, the bank maintains a "buy" rating with a target price of HKD 537

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