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<Research>HSBC Global Research: TENCENT (00700.HK) Games Recovery On Track
Recommend 11 Positive 18 Negative 11 |
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TENCENT (00700.HK) will announce its 1Q24 results on 14 May, HSBC Global Research reminded in its report. On the back of its strategic adjustments, and robust growth from evergreen titles like Fight of the Golden Spatula and CrossFire Mobile, the company's 1Q24 mobile game revenue was forecast to grow. The broker believed that the Chinese tech giant can regain its growth momentum, and that its business recovery is on the right track, with the expectation that it will improve in 2H24. HSBC Global Research expected TENCENT to continue to actively adjust its game portfolio. Apart from revitalizing existing games that are not executing well, the broker also assumed TENCENT to step up its efforts to increase user loyalty and payment rates for new games. The broker foresaw the company's game business to continue to recover, and the continued growth of its advertising, fintech and business services to help improve margins, thereby supporting earnings growth. The broker hence maintained its Buy rating on TENCENT. HSBC Global Research anticipated TENCENT to continue its buyback program to alleviate sell-down pressure, and kept its TP at $385, with profit forecasts for 2024-26 largely unchanged. AAStocks Financial News |
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