CICC: Maintains Tencent's "Outperform" rating with a target price of HKD 468

CICC released a research report stating that it maintains a "outperform" rating on Tencent Holdings. The revenue forecast for 2024 and 2025 remains unchanged. Due to the increase in gross profit margin and the improvement in earnings of affiliated companies, the 2024/2025 Non-IFRS net profit was raised by 9% and 11% to RMB 223.7 billion and RMB 255.6 billion, respectively. Due to the downward adjustment of industry valuation center, the target price remains at HKD 468. Tencent's revenue in 2Q24 increased by 8% year-on-year to RMB 161.1 billion, slightly higher than the bank's expectations, and basically met market expectations. Non-IFRS operating profit increased by 27% to RMB 58.4 billion, exceeding the bank's and market's expectations by 6.4% and 7.0% respectively, mainly due to higher-than-expected gross profit margins in VAS and FBS businesses

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