- Tencent‘s net income for 3Q exceeded expectations at 53.23 billion yuan, surpassing the estimated 45.33 billion yuan.
- The company reported an operating profit of 53.33 billion yuan, slightly below the expected 53.68 billion yuan.
- Adjusted net income came in at 59.81 billion yuan, beating the forecasted 54.37 billion yuan.
- Revenue totaled 167.19 billion yuan, just under the anticipated 167.93 billion yuan.
- International games revenue was 14.5 billion yuan, slightly less than the 14.98 billion yuan estimate.
- Social networks revenue was nearly on par with expectations at 30.9 billion yuan, against a forecast of 30.91 billion yuan.
- The number of monthly active users (MAUs) for Weixin and WeChat reached 1.38 billion, exceeding the estimate of 1.37 billion.
- QQ smart device MAUs were 562 million, lower than the expected 570.69 million.
- Fee-based VAS subscriptions rose to 265 million, above the projected 263.91 million.
- The company’s net other gains were 2.97 billion yuan, significantly higher than the 1.38 billion yuan estimate.
- Selling and marketing expenses were reported at 9.41 billion yuan, exceeding the forecasted 9.06 billion yuan.
- Tencent is viewed positively in the market with 70 buy recommendations, 2 hold recommendations, and no sell recommendations.
Tencent on Smartkarma
Analysts on Smartkarma have been closely covering Tencent, with differing viewpoints on the company’s performance and potential. Travis Lundy, in the report titled “HK Connect SOUTHBOUND Flows (To 8 Nov 2024)”, notes a strong buying activity in Hong Kong shares, particularly in tech stocks like Tencent, which are seen as a safe haven against trade uncertainties. Ming Lu, in the report “Tencent (700 HK) 3Q24 Earning Preview”, anticipates record-high operating profit for Tencent in the upcoming quarter, pointing to potential market share gains from competitors. On the other hand, Ke Yan, CFA, FRM, takes a more cautious stance in the report “Tencent/Netease: Zeroed Again After Three Months”, highlighting the absence of game approvals for Chinese online game players. Meanwhile, Ying Pan, in the report “[Tencent (700 HK, BUY, TP HK$508) TP Change]: Upswing Performance & Cornerstone of the Sector,” emphasizes Tencent‘s strong Q3 results and optimistic outlook on the company’s future growth drivers.
A look at Tencent Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have assessed Tencent Holdings Limited’s long-term outlook using their Smart Scores framework. With a moderate score of 2 for Value, Tencent is seen as offering fair value in relation to its stock price. The company received a more promising score of 3 for Dividend, Growth, Resilience, and Momentum, indicating a relatively positive outlook in these areas. Tencent Holdings operates as an investment holding company, offering a range of Internet and mobile value-added services, online advertising, and e-commerce transactions globally.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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