Citigroup: Maintains "Buy" rating on Tencent Holdings Limited, target price raised to HKD 573

Citigroup released a research report stating that, due to Tencent's stable execution record and stable profit prospects, it maintains a "buy" rating and core holding position. After adjusting the forecast, the target price was raised from HKD 535 to HKD 573. The bank expects Tencent to announce its third-quarter performance in mid-November, which is expected to meet the bank's and market expectations. Game revenue may increase, but will be offset by weak financial technology, enterprise services, and online advertising revenue. The bank believes that the focus of the performance conference call will be management's comments on the macro environment, reflected in its payment transaction activities and advertisers' advertising spending sentiment, especially during the Double 11 promotion period, as well as the performance of flagship games and new game pipelines