Citigroup: Gives Tencent (00700) a "buy" rating with a target price of 573 Hong Kong dollars.

Citibank released a research report stating that it gives TENCENT (00700) a "buy" rating, believing that the future international game total revenue will steadily increase year-on-year, game extension revenue period will lengthen, and the overall performance of domestic "evergreen" games will recover. It can drive significant growth in gaming business revenue next year, with a target price of 573 Hong Kong dollars. The report stated that Tencent's third-quarter revenue increased by 8% year-on-year to 167.2 billion yuan, meeting expectations. Game revenue was 51.8 billion yuan, also higher than the predicted 50.9 billion yuan. Non-international financial reporting standards net profit was 59.8 billion yuan, a 33% year-on-year increase, exceeding Citibank and market expectations by over 10%. Citibank believes that Tencent's overall performance in the third quarter met expectations, with significantly higher adjusted operating profit than expected, mainly due to higher profits contributed by associated companies.