New Street Research - Tencent Holdings Ltd. (00700) Tencent 3Q24 Results: Gaming to Continue to Accelerate in 4Q24

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New Street Research

Jin Yoon

Tencent 3Q24 Results: Gaming to Continue to Accelerate in 4Q24

What’s new: Tencent’s reported 3Q24 top-line results that were largely in line with consensus and our expectations. Online gaming (domestic and international) and payments could accelerate, while ads could decelerate in 4Q partly due to tougher comps and continued weakness in brand ads. Margins could continue to improve amid a shift to high-quality revenues and continued cost controls. We maintain our PT at HKD530.

Analysts:
Jin Yoon

14/11/2024 1 EN

Underlying

Tencent Holdings Ltd.

Tencent Holdings Limited is an investment holding company principally involved in the provision of value-added services (VAS) and online advertising services. The Company operates through three main segments. The VAS segment is mainly involved in provision of online/mobile games, community value-added services and applications across various Internet and mobile platforms. The Online Advertising segment is mainly engaged in display based and performance based advertisements. The Others segment is mainly involved in provision of payment related services, cloud services and other services.

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KYG875721634 Hong Kong Stock Exchange Cayman Islands

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Analysts

Jin Yoon

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Tencent 3Q24 Results: Gaming to Continue to Accelerate in 4Q24

PSA Media & Entertainment: Nexon (3659 JT) FY24 Q3

Tencent Holdings (700 HK): 3Q24: Solid earnings beat; mini shop and potential blockbuster as key catalysts.

AMAT 4FQ24: Headwinds into 2025. Maintain cautious view. Neutral, $205.

Liquid Intelligent Technologies (HY, Overweight) Pro forma balance sheet for equity raise suggests the bonds offer good value

Sunrise (Neutral, TP: CHF37, -16%) Sunrise – Initiation, TP: CHF37, -16%, Neutral

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