To The Moon

Jinwu Financial InformationSinolink SecuritiesAccording to the research report,Tencent Holdings(00700) Disclosed the performance announcement for the third quarter of 2024, 2024Q3 achieved revenue of 167.2 billion yuan, +8% year-on-year, and NON-IFRS net profit attributable to the parent company of 59.8 billion yuan, +33% year-on-year. The bank continued to point out that the transaction volume of WeChat mini programs in 2024Q3 exceeded 2 trillion, a year-on-year increase of more than ten percentage points; The upgrade of video account stores to WeChat stores is more conducive to merchants' effective reaching customers and sales conversion, aiming to create a unified and reliable transaction experience based on the entire WeChat ecosystem; The commercial search volume and click-through rate of WeChat Souyisou increased year-on-year. Released an upgraded version of the basic model Tencent Hunyuan Turbo using the heterogeneous hybrid expert architecture (MoE). Compared with the previous generation model Tencent Hunyuan Pro, its training and inference efficiency has doubled, and the inference cost has been halved. The bank stated that the company's game revenue in 2024Q3 was 51.8 billion yuan, a year-on-year increase of 13%. Games in the local market: revenue was 37.3 billion yuan, +14% year-on-year. The turnover of "Honor of Kings" and "Peace Elite" increased year-on-year, "DNF" increased, and the quarterly average daily activity of "Naruto" and "Fearless Contract" hit a new high. International market games: revenue of 14.5 billion yuan, 9% year-on-year (11% at constant exchange rates). "PUBGMOBILE", "Brawl Stars", etc. performed well, the growth rate of turnover was significantly higher than the growth rate of revenue, the retention rate of some games increased, the company extended the deferred cycle, and it is expected to continue to be released in subsequent quarters. The bank expects the company's NON-IFRS net profit in 2024/2025/2026 to be 2225/2526/275.2 billion yuan respectively, and the current stock price corresponds to a PE of 15.57/13.71/12.58 X, maintaining a "buy" rating.