Shenwan Hongyuan released a research report saying that it maintained the "buy" rating of Tencent Holdings (00700), and raised its profit forecast, taking into account the fact that the company's high gross margin business growth momentum led to an increase in overall profit margin. It is estimated that the company's adjusted net profit after 24-26 years will be 2261 / 251 billion yuan (the original forecast is 1801 pound 2096 / 230.1 billion yuan). The target market capitalization has been raised from 3.8184 trillion yuan to 4.0351 trillion yuan, with a target price of HK $471.
According to the report, Q1 domestic game revenue fell 2% year-on-year (better than a 4% year-on-year decline), according to the report.FloatingdragonmegawaysslotOverseas game revenue increased by 3% year-on-year (in line with expectations), while overall game revenue declined slightly. However, in terms of pipeline performance and delay, the Q1 pipeline end is stronger than expected, with the overseas pipeline end growing by 34% compared with the same period last year. According to spot data, Supercell's "Wild chaos" Q1 pipeline increased by nearly 260% year-on-year (but with a long delay cycle).FloatingdragonmegawaysslotDomestic "Arena of Valor" and "Game for Peace" became regular employees in March compared with the same period last year. The bank calculates that the growth rate of the Q1 pipeline end is in the single digits. Q2 is expected to grow from the same period last year: "DNF Mobile Games" 5Floatingdragonmegawaysslot.21 launch; follow-up "Need for Speed" and "Breaking Dawn of the Star" are noteworthy, and the bank expects growth to rise to 20 per cent in the second half of the year. The overall gross profit margin of value-added services rose to 57% from 54% in the same period last year, mainly driven by subscription revenue such as high gross margin Mini Game and music. The live broadcast business with low gross margin is still shrinking.