CMB International: Maintains "buy" rating on TENCENT (00700) with a target price of HK$525.

Ping An International issued a research report, maintaining a "buy" rating on TENCENT (00700), with basic forecasts for FY24-26 unchanged, and a target price of 525 Hong Kong dollars. On January 17, the bank hosted a Tencent offline NDR in Beijing and summarized the main points of the meeting in their report. They are also more optimistic about Tencent's long-term growth DRIVE (such as WeChat e-commerce and AI) after the meeting. The bank expects Tencent to continue its strong profit growth performance in 4Q24, mainly benefiting from strong game revenue growth and the resilience of its marketing business. They also expect total revenue in 4Q24 to increase by 8% year-on-year to 167.6 billion RMB (basically in line with consensus expectations), and non-IFRS net profit to increase by 29% year-on-year to 55.2 billion RMB (5% higher than consensus expectations).